Tariffs Hit Best Buy Revenues As Retailer Reduces Chinese Imports

ByMark Faithfull,

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Mark Faithfull is London-based and covers retail and real estate Follow AuthorMay 29, 2025, 01:13pm EDTShareSave

Best Buy is staying agile in an uncertain world of tariffs. (Photo by Justin Sullivan/Getty Images)

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U.S. electronics retailer Best Buy missed quarterly revenue expectations and cut its full-year sales and profit guidance amid the impact of higher tariffs.

Despite a judicial decision that could derail President Trump’s tariffs, retailers have juggled higher cost the past two months. For 2026 fiscal year, Best Buy downgraded revenue expectations to the $41.1 billion to $41.9 billion range, down from its previous range of $41.4 billion to $42.2 billion.

Best Buy said that it increased prices on some items because of the higher costs from tariffs, with changes having taken effect by mid-May.

by around 8% after the financial update and are down about 24% since the start of the year, with much of that fall off occurring after President Trump made the first tariff announcements.

On an earnings call Best Buy CEO Corie Barry said price hikes were “the very last resort” after the company took other measures to offset higher expenses, but it is far from the only U.S. retailer to post first-quarter earnings showing the disruptive nature of the global trade wars.

On the latest developments, Barry reflected that the latest legal ruling reinforced that the company had to stay agile amid uncertainty.

“If you look back over the last, let’s call it four months, the variety of points where there has been a change in approach to global trade, they are myriad,” she said. “And so what I really tried to work with the team on is to not actually overreact to any given moment in time, but instead to stay maniacally focused on our customers and ensure we are bringing the right assortment price and promotionality to them, whatever the backdrop.”

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Best Buy’s net income in the three-month period ending May 3 declined about 18% $246 million to $202 million from the same period last year. First-quarter revenue dropped from $8.85 billion from a year-ago.

Comparable sales, which Best Buy defined as revenue from online sales and stores open at least 14 months, dropped 0.7% year on year. In the U.S., comparable sales also fell 0.7% year over the same period as shoppers bought fewer home theaters, appliances and drones, though there was growth in the computing, cell phone and tablet categories.

Best Buy Reduces Chinese Imports

Barry added that while China continues to be a major source of merchandise, the country now accounts for 30% to 35% of its merchandise compared with 55% when it shared the same information in March. About a quarter of its merchandise comes from the U.S. or Mexico, which do not have tariffs because of domestic production or exemptions, she said.

Corie Barry, chief executive officer of Best Buy Co., has led the company as it pivots in the wake ... More of tariffs.. Photographer: Sarah Silbiger/Bloomberg

© 2019 Bloomberg Finance LP

The remaining approximately 40% comes from other countries, including Vietnam, India, South Korea and Taiwan, which are subject to a 10% tariff.

Best Buy also encouraged vendors to manufacture in multiple countries. This helps Best Buy negotiate lower costs and adjust the mix of merchandise that it carries, she said. The company also expanded production in Canada.

Barry said that Best Buy’s strategic priorities include improving the customer experience to better connect its digital and in-store businesses, launch and grow its third-party marketplace and retail media businesses, and drive efficiency.

After getting a boost from Americans splurging on home offices and entertainment centers during the pandemic, Best Buy hit a lull. It’s struggled with declining sales over the past three years.

One hurdle for the retailer is a lack of flashy tech products to lure shoppers. Barry also highlighted new product launches such as the Nintendo Switch 2 video game console that will debut this summer. Best Buy is offering preorders and will open its doors at midnight June 5 to allow customers to pick up their consoles or get a new game.

Smartphone sales have been another strong category for Best Buy and Verizon and AT&T have both increased staffing at Best Buy stores to cater for increased demand.