Best Buy has experienced a 15% plunge in its stock as President Donald Trump’s new duties came into force, setting it for its worst day in nearly five years. The 25% tariffs on imports from Mexico and Canada took effect, while duties on Chinese goods were doubled to 20%. The uncertainty around tariffs overshadowed a surprise rise in comparable sales, snapping 12 quarters of declines during the holiday quarter.
Major US retailers like Target and Walmart have preferred to provide cautious forecasts due to uncertainty around the levies. Target CEO Brian Cornell said that prices could increase over the next couple of days for seasonal produce such as avocados as the company depended on Mexico for a significant amount of supply. However, if there is a 25% tariff, those prices will go up.
Best Buy expects fiscal year 2026 comparable sales to be in the range of flat to up 2%, largely below analysts’ average expectations of a 1.71% rise. Adjusted profit per share is estimated to rise in the range of $6.20 to $6.60, compared with expectations of $6.55. The company’s fourth-quarter comparable sales rose 0.5% as customers took advantage of promotions to snap up high-end tablets and television sets.
Source: Financial Post
Source: USA TODAY
