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Update of 1-Best Buy Annual Sales Estimates Misses Estimates as a Tariff



(Adds earnings release details, shares)

August 29 (Reuters) – Best Buy Co Inc forecasts same-store sales below analysts' forecasts on Thursday, citing new US tariffs set for import into China, such as phones, video game consoles and other electronics.

Best Buy shares, which lost about 10% of their value this month, fell 5.4% to $ 65.30 in pre-market trading, as the consumer electronics retailer also raised concerns about buyer insecurity in the second half a year.

The company reduced its year-round sales forecast for the same stores to an increase of 0.7% to 1.7%, from 0.5% to 2.5%. Analysts expected a 2% increase.

President Donald Trump said last week that US tariffs on Chinese imports worth $ 250 billion would rise to 30% from the current 25% since the beginning of October 1.

While Best Buy said these tariffs affect only about 7% of the price of goods sold, the projected 15% tax on additional $ 300 billion in Chinese goods would hit most of Best Buy's best-selling products, such as mobile phones and laptops.

Trump announced an increase of up to 15% from 10% last Friday, with the first tranche of more than $ 125 billion in targeted goods, including smartwatches, Bluetooth headsets and flat panel TVs, coming into force on September 1.

Tariffs for the remainder of the $ 300 billion list, which includes mobile phones, laptops, toys and clothing, will begin on December 15, according to the US Commerce Office.

Total sales of the same store at Best Buy increased 1.6% in the second quarter ended August. 3, analysts' missing estimates for an increase of 2.15% e, according to IBES data from Refinitiv.

Revenue rose to $ 9.54 billion from $ 9.38 billion, a touch below expectations of $ 9.56 billion.

Excluding disposables, the company earned $ 1.08 a share in the second quarter, winning. analysts' estimates of 99 cents a share.

(Report by Uday Sampat in Bengaluru Editing by Tomasz Janovski)


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