Best Buy has lowered its full-year sales outlook and missed revenue projections, citing declining demand for consumer electronics and economic uncertainty. CEO Corie Barry pointed to softer-than-expected sales in September and October, driven by cautious consumer spending, election distractions, and delayed purchases as customers awaited holiday discounts.

Despite improved momentum during early holiday shopping, Best Buy projects flat to slightly declining sales for the fourth quarter. New tech releases, including AI-enabled laptops and iPhones, failed to provide a significant boost, with comparable sales down 2.9% year-over-year. The retailer also faces potential cost pressures from President-elect Donald Trump’s proposed tariffs on Chinese, Mexican, and Canadian imports, which could impact both the company and customers.

The company continues to navigate a shift in consumer behavior as discretionary spending lags, inflation persists, and demand normalizes following a pandemic-era sales surge in electronics. While signs of stabilization are emerging, challenges like a shorter holiday season and fluctuating shopper patterns keep expectations muted.