EAST RUTHERFORD, NJ – Best Buy announced its fourth-quarter earnings and revenue figures today, surpassing expectations. However, CEO Corie Barry warned of potential price hikes for U.S. consumers due to President Donald Trump’s tariffs on products from China and Mexico.
During the earnings call, Barry highlighted the significance of trade for Best Buy, as China and Mexico are the company’s primary sources for the supply chain. She expressed concerns about the impact of the tariffs on the consumer electronics industry, emphasizing the complexity of the global supply chain.
In the company’s fiscal 2025 fourth quarter, Best Buy reported adjusted earnings per share of $2.58, exceeding analyst estimates of $2.40. Revenue for the quarter also surpassed expectations at $13.95 billion, compared to the anticipated $13.70 billion.
Despite the positive earnings report, fourth-quarter revenue decreased by 4.8% from the previous year to $14.65 billion. Net income for the quarter was reported at $117 million, or 54 cents per share, down from $460 million, or $2.12 per share, in the same period last year.
Comparable sales, which include online revenue and stores open for at least 14 months, increased 0.5% year over year, excluding the additional week in fiscal 2024. Best Buy had projected a change ranging from flat to a 3% decrease in sales.
For the full fiscal year 2025, revenue totaled $41.53 billion, a 4.4% decline from the previous year. Best Buy attributed this decrease in revenue to having one fewer week in the fiscal year compared to the prior period, estimating that the additional week in fiscal 2024 added $735 million in revenue.
Looking ahead to fiscal year 2026, Best Buy issued guidance forecasting revenue between $41.4 billion and $42.2 billion, with a projected comparable sales growth of 0% to 2% year over year. The company remains cautious about consumer behavior in light of inflation and potential tariff impacts.
President Trump recently imposed new tariffs on Chinese goods, adding to existing tariffs on products from Mexico and Canada. Best Buy, with 60% of its cost of goods coming from China, is bracing for potential cost increases that could impact U.S. consumers as the trade war continues.