Best Buy Co. reported a decline in first-quarter income and revenue and lowered its full-year sales and profit guidance due to the impact of U.S. tariffs on imports, particularly from China. The company now expects fiscal 2026 revenue between $41.1 billion and $41.9 billion, down from its previous forecast of $41.4 billion to $42.2 billion. Adjusted earnings per share are projected to be in the range of $6.15 to $6.30, compared with the prior guidance of $6.20 to $6.60. For the first quarter ended May 3, Best Buy posted net income of $202 million, or $0.95 per share, a decrease of about 18% from $246 million, or $1.13 per share, a year earlier. Adjusted earnings per share were $1.15, above analyst estimates of $1.09. Revenue fell to $8.77 billion from $8.85 billion, missing expectations of $8.81 billion. Comparable sales declined 0.7% year over year, with U.S. comparable sales also down 0.7%. Gross margin was 23.4% and adjusted operating margin was 3.8%. Best Buy returned $302 million to shareholders during the quarter. Online sales increased 2.1% year over year. The company cited higher borrowing costs and cautious consumer spending on big-ticket items such as appliances and electronics as additional challenges. Best Buy has already raised prices on some products to mitigate increased costs from tariffs, with the hikes taking effect by mid-May. CEO Corie Barry described price hikes as a 'last resort.' About 55-60% of the company's merchandise is sourced from China, with Mexico accounting for around 20%. Despite the headwinds, Best Buy reported growth in computing, mobile phone, and tablet categories, partially offsetting declines in home theater and appliance sales. The retailer highlighted the upcoming launch of Nintendo's Switch 2 console, noting that 70% of preorder customers opted for in-store pickup. Best Buy shares fell nearly 3% in premarket trading following the earnings report and guidance cut. The company indicated it will continue to scenario-plan and adjust as the tariff situation and consumer trends evolve.