Best Buy Sales Forecast Cut Due To Potential Import Tar Policies

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Best Buy Sales Forecast Cut Due To Potential Import Tar Policies
Best BuySeth BashamWedbush
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Seth Basham, an analyst at WedBush, has discussed Best Buy's recent decision to lower its sales outlook for the year. This comes after the company's third quarter earnings missed estimates. Basham suggests that if Donald Trump's plans to impose tariffs on imported goods are implemented, Best Buy could face further challenges, given that over 90% of its products are imported, with significant sources from China and Mexico.

Seth Basham , analyst of WedBush, discusses Best Buy revising its sales outlook for the year, lowering expectations.

“They have a fair amount of exposure there. We’ve seen this company navigate tariffs in the past with some detrimental affects to their profit and loss statement… we think that there will be negative affects on them if these tariffs do in fact go into effect.” The threat of tariffs aside, Best Buy said on Tuesday that demand for electronics in the U.S. remains sluggish,“The company’s comparable store sales were down 2.9 per cent for the quarter. This compares to guidance, and our consensus forecast of down one per cent,” Basham said.

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