Best Buy sinks after downbeat forecasts, tariff-driven price hike warning

Shares of electronics retailer Best Buy BBY.N fall as much as 15% to $73.70 in early trade

Stock among worst performers on broader S&P 500 index .SPX, BBY set for its worst day since March 12, 2020 if losses hold

Co sees annual comparable sales of flat to 2% growth, largely below estimates of a 1.71% rise- data compiled by LSEG

Co warns possibility of higher prices for American shoppers as President Donald Trump's tariffs come into force

Annual profit forecast also largely below estimates, revenue outlook in line with expectations, says guidance excludes impact of tariffs

However, BBY posts surprise rise in Q4 comparable sales and beats quarterly revenue, profit estimates on holiday season-driven demand for Computing and Mobile Phones segment

Q4 comparable sales rose 0.5%, after 12 quarters of declines, vs. estimates of a 1.33% drop

BBY rose 9.6% in 2024