10:20 AM EDT, 05/29/2025 (MT Newswires) -- Best Buy ( BBY ) lowered its full-year outlook on Thursday due to the impact of tariffs, while the electronics retailer's fiscal first-quarter revenue fell more than market expectations.

The company now anticipates per-share adjusted earnings to be in a range of $6.15 to $6.30 for fiscal 2026, down from its previous guidance of $6.20 to $6.60. The current consensus on FactSet is for non-GAAP EPS of $6.13. The stock fell 8.5% in Thursday trade.

Revenue is pegged at $41.1 billion to $41.9 billion, down from prior projections of $41.4 billion to $42.2 billion. Comparable sales are expected to be down 1% to up 1% for the fiscal year, compared with the previous forecast range of flat to growth of 2%. The Street is looking for sales of $41.38 billion and expects same-store sales to be flat.

"We are updating our full-year guidance to incorporate the impact of tariffs," Chief Financial Officer Matt Bilunas said in a statement. "Our underlying working assumptions are that tariffs stay at the current levels for the rest of the year, and there is no material change in consumer behavior from the trends we have seen in recent quarters."

The retailer has been "actively employing many tactics" in partnership with its vendors to offset the impacts of tariffs, with price adjustments as the "last resort," Chief Executive Corie Barry said during an earnings call, according to a FactSet transcript. Barry told analysts that the company is "committed" to offering competitive prices to consumers.

"Due to mitigation efforts by both vendors and by Best Buy ( BBY ), the increased product costs that are flowing to us are lower than the tariff rates," Barry said on the call. "As of mid-May, we have already made the related price and promotional adjustments to our assortment."

The US Court of International Trade on Wednesday blocked most of President Donald Trump's reciprocal tariffs announced last month. Trump recently agreed to extend his 50% tariff deadline for the European Union to July 9, while the US and China agreed earlier in May to suspend most duties on each other's goods for 90 days.

For the three months through May 4, Best Buy's ( BBY ) adjusted EPS decreased to $1.15 from $1.20 the year before, but surpassed the average analyst estimate of $1.09. Revenue dropped to $8.77 billion from $8.85 billion, missing the Street's view for $8.81 billion.

Comparable sales edged 0.7% lower amid declines in the company's domestic and international operations, worse than the market's forecast for a 0.4% decrease. Home theater, appliances and drones drove the decline in domestic same-store sales, partially offset by growth in the computing, mobile phone and tablet categories, according to the retailer. Foreign exchange was a 450-basis-point headwind on international sales.

"For the most part, customer behavior in (the first quarter) did not change materially," according to Barry. "We also still see a customer that is willing to spend on high price point products when they need to, or when there is technology innovation."

Best Buy ( BBY ) expects comparable sales to be "slightly down" in the ongoing quarter versus last year, Bilunas said. Analysts on FactSet currently estimate same-store sales to decrease by 0.3%.

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