Best Buy's (BBY) fiscal fourth-quarter results topped market expectations, but the electronics retailer flagged potential price increases amid tariff uncertainties and issued a full-year earnings outlook that fell short of Wall Street estimates at the midpoint.

The company anticipates per-share adjusted earnings to come in between $6.20 and $6.60 for fiscal 2026, compared with the $6.37 recorded in the previous fiscal year. The guidance's midpoint of $6.40 is below the current consensus on FactSet for $6.58. Shares of the company slid 14% in Tuesday's trading session.

Revenue is pegged at $41.4 billion to $42.2 billion while the retailer expects comparable sales to be flat to up 2%. In fiscal 2025, sales dropped to $41.53 billion from $43.45 billion on an annual basis, while comparable sales were down 2.3%. The Street is looking for sales of $41.75 billion and same-store sales to increase 1.5%.

Best Buy's outlook doesn't include the impact of recently implemented or proposed tariffs because of a "highly dynamic situation with uncertainty about the duration, timing, amount and countries involved," in addition to the potential consumer reaction, Chief Executive Corie Barry said during an earnings call, according to a FactSet transcript.

US President Donald Trump's previously announced 25% tariffs against Canada and Mexico go into effect on Tuesday, while the US government reportedly doubled its levy on Chinese imports to 20% from 10%.

International trade is "critically important" to the retailer's business and China and Mexico remain the top two sources for the products it sells, according to Barry. "While Best Buy only directly imports 2% to 3% of our overall assortment, we expect our vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely," the CEO said on the call.

For the three months through Feb. 1, Best Buy's adjusted EPS slipped to $2.58 from $2.72 the year before, but surpassed the average analyst estimate of $2.40. Revenue decreased to $13.95 billion from $14.65 billion, ahead of the Street's view for $13.68 billion. The better-than-expected sales were "driven by strong growth in computing, as well as improved sales performance in other categories," Barry said in a statement.

Comparable sales edged 0.5% higher amid gains in the company's domestic and international operations, better than the market's forecast for a 1.5% decline. Computing, tablets and services drove the domestic same-store sales growth of 0.2%, partially offset by declines in the appliances, home theater and gaming categories, according to the retailer. Foreign-exchange was a 500 basis-point headwind on international sales.

Best Buy expects comparable sales to be "slightly down" in the ongoing quarter versus last year, Chief Financial Officer Matt Bilunas said in the statement. Analysts on FactSet currently estimate same-store sales to inch up 0.4%.

"As we enter (fiscal 2026), we believe consumer behavior will be largely similar to last year - remaining resilient but still dealing with high inflation that is driving expenses up across their lives, making them value focused and thoughtful about big ticket purchases," according to Bilunas.