Best Buy Co. Inc. BBY-N slashed its full-year comparable sales and profit forecasts on Thursday amid concerns that U.S. tariffs would weigh on consumer demand for big-ticket items such as appliances, gaming consoles and home theatres.
American households are in limbo as they battle higher borrowing costs, with tariffs now fuelling concerns of price surges on everything from toys to groceries and sneakers.
Shares of the top U.S. electronics retailer were down 6 per cent in early trading as it also posted a bigger drop in first-quarter sales than analysts had expected.
Best Buy relies heavily on imports from China – which make up about 30 per cent to 35 per cent of its overall goods – for products such as furniture, audio equipment, cameras and drones.
It made adjustments to prices and promotions on its assortment, but plans to remain “competitively priced,” company executives said.
“We believe the consumer has remained resilient while dealing with …