Best Buy warns of higher prices for shoppers due to tariffs

National / World
Earns Best Buy_1558698013343

FILE- In this Nov. 22, 2018, file photo people wait in line to buy televisions as they shop during an early Black Friday sale at a Best Buy store on Thanksgiving Day in Overland Park, Kan. Best Buy Co., Inc. reports financial results Thursday, May 23, 2019. (AP Photo/Charlie Riedel, File)

NEW YORK (AP) — Best Buy’s outgoing CEO warned Thursday that U.S. shoppers will likely see prices rise if the next round of tariffs on Chinese goods happens.

CEO Hubert Joly said the electronics chain has been able to avoid price hikes on most of its products with a few exceptions, like washing machines. Joly said that he is working directly with the Trump administration to minimize the impact new tariffs could have on U.S. shoppers, and plans to continue to do so when he steps down as CEO next month and becomes executive chairman of the company’s board. His replacement, Corie Barry, will be Best Buy’s first female CEO.

Joly said it’s too early to know what products could see price hikes, since it’s not yet known which goods will be on the next rounds of tariffs of Chinese goods. Other retailers, including Walmart and Target, have also warned of rising prices due to tariffs.

Shares of Best Buy Co. fell 5.5% Thursday, despite the company reporting better than expected earnings for the most recent quarter.

Best Buy reported net income of $265 million, or 98 cents per share, during the fiscal first quarter.

Adjusted earnings came to $1.02 per share, beating Wall Street expectations by 14 cents, according to Zacks Investment Research.

Revenue rose to $9.14 billion in the period, meeting Wall Street expectations.

For the current quarter ending in August, Best Buy said it expects its per-share earnings to range from 95 cents to $1.

It still expects full-year earnings in the range of $5.45 to $5.65 per share.

Shares of the Richfield, Minnesota-based company fell $3.80 to $65.37 midday Thursday.

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