Best Buy (BBY.N), stuck to its annual sales and profit forecasts on Thursday despite posting quarterly results that topped estimates, as it expects tariff-induced uncertainty in the second half of the year.

Shares of the top U.S. electronics retailer fell 5.7% in morning trading, as investors focused on a likely hit to the company’s margins due to higher tariffs on U.S. imports .

Several retailers, including Best Buy, have had to raise prices on some goods to absorb the hit from these steep levies.

While Best Buy posted quarterly results that topped initial estimates, its annual sales and profit forecasts stayed put. Getty Images

Company executives said the price hikes were lower than the overall rate of tariffs, owing to its mitigation strategies.

Best Buy, which sources most

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