Best Buy (BBY) is tumbling 15% after the retailer delivered better-than-expected fourth-quarter results but provided full-year earnings per share guidance whose midpoint was well below analysts' average estimate. Additionally, BBY provided a lackluster full-year comparable-sales outlook.

The Highlights of BBY's Q4 Results and Its Guidance

The retailer reported that its revenue had dropped 4.7% versus the same period a year earlier to $13.95 billion, versus analysts' average estimate of $13.7 billion. The company's EPS, excluding certain items, came in at $2.58, versus analysts' average outlook of $2.41. The sales of its comparable stores rose only 0.5% year-over-year.

A busy retail store showcasing a wide range of consumer electronics.

For all of BBY's current fiscal year, the retailer expects its comparable sales to rise just 0% to 2%. Additionally, the company expects its full-year adjusted EPS to come in at $6.20 to $6.60 versus the mean outlook of $6.60.

Also importantly Best Buy, which noted that its full-year guidance did not factor in the impact of any tariffs, predicted that its vendors would raise their prices in response to tariff hikes. The latter moves could significantly pressure BBY's margins and profits.

The Recent Price Action of BBY

In the last month, the shares have dropped 13%, while they have sunk 17% in the last three months. So far in 2025, the shares have retreated 13.6%.

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Disclosure: None. This article is originally published at Insider Monkey