Best Buy Co., Inc. (NYSE: BBY) saw its stock plummet 12.59% on Tuesday, March 4, 2025, after reporting downbeat forecasts for the fiscal year 2026 amid soft demand for big-ticket purchases due to high inflation and tariff woes.

Despite beating Wall Street's estimates for the fourth quarter of fiscal 2025, with adjusted earnings of $2.58 per share and revenue of $13.95 billion, the consumer electronics retailer's guidance for the current fiscal year fell short of expectations.

For fiscal 2026, Best Buy forecasted:

• Comparable sales in the range of flat to up 2%, below analysts' expectations of a 1.7% rise
• Adjusted earnings per share between $6.20 and $6.60, compared to analysts' estimates of $6.58

Notably, the company's guidance does not include the impact of recently implemented or proposed tariffs, which could further pressure consumer spending on electronics.

Chief Financial Officer Matt Bilunas acknowledged that consumers remain "value focused and thoughtful about big ticket purchases" due to high inflation, driving up expenses across their lives. This cautious consumer behavior is expected to persist throughout the year, weighing on Best Buy's growth prospects.