Prompts winter weather advisories as cold air moves in Friday night

MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all. 

Turn Up Your Support

Best Buy posted a solid second quarter that exceeded Wall Street expectations, but the performances was overshadowed by an outlook that has grown cloudy due to tariffs the U.S. is imposing on trading partners.

Despite easily beating expectations, shares slid more than 2 percent before the opening bell Thursday after the company stuck to earlier guidance for 2025. The Richfield, Minnesota, company cited the potential impact of tariffs.

Comparable sales, a good barometer of a retailer's health, increased 1.6 percent, which was in line with expectations. The company had been battered by online competition and also a return to more normalized spending on gadgets after a pandemic-induced splurge by Americans.

CEO Corie Barry pointed out that it was the highest growth for same-store sales, which include online sales, in three years.

The reported net income of 87 cents per share. Earnings, adjusted for restructuring costs and amortization costs, were $1.28 per share, which is 6 cents better than industry analysts had expected, according to a survey by Zacks Investment Research.

Sales rose to $9.44 billion and also handily topped expectations.

The electronics industry can be particularly hard hit by tariffs because so many good are imported.

 that Best Buy was taking a variety of actions to offset tariff costs, including a push on its vendors to diversify their manufacturing. The company, which still faces intense competition, said it raised some prices to absorb tariff-related costs only as a “last resort.”

China remains the No. 1 source for the retailer's products, but Best Buy estimates that the percentage of product cost those imports represent is now approximately 30 percent to 35 percent, down from the 55 percent in March. That’s because suppliers are expanding production outside of China, among other actions. The U.S. and Mexico account for roughly 25 percent of its cost.

For the year, Best Buy stuck by revenue expectations in the range of $41.1 billion to $41.9 billion and a comparable sales range of anywhere from a decline of 1 percent to an increase of 1 percent.

It also left profit expectations unchanged, forecasting per-share earns of $6.15 to $6.30 this year. Analysts expect $6.16 per share on revenue of $41.36 billion for the year, according to FactSet.

Business and Economic News

Homepage

The Associated Press

Author

Best Buy posted a solid second quarter that exceeded Wall Street expectations, but the performances was overshadowed by an outlook that has grown cloudy due to tariffs the U.S. is imposing on trading partners.


The Best Buy logo hangs above a store on April 16, 2012 in Chicago, Ill.

A solid quarter at Best Buy overshadowed by outlook grown cloudy with tariffs

Go Deeper.

Like this?