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Best Buy reported quarterly results on Thursday.Mario Anzuoni/Reuters

Best Buy Co. Inc. forecast annual same-store sales below analysts’ estimates on Thursday, citing new U.S. tariffs set to be imposed on Chinese imports, such as phones, video game consoles and other electronics.

Best Buy’s shares, which before Thursday had lost about 10 per cent of their value so far this month, fell 8 per cent to close at US$63.49 in New York as the consumer-electronics retailer also flagged concerns over uncertainty related consumer buying behaviour in the second half of the year.

The company narrowed its full-year same-store sales forecast to a rise of 0.7 per cent to 1.7 per cent, from 0.5 per cent to 2.5 per cent. Analysts had expected a 2-per-cent increase.

U.S. President Donald Trump last week said tariffs on US$250-billion worth of Chinese imports would rise to 30 per cent from the current 25 per cent beginning Oct. 1.

While Best Buy has said those tariffs only affect about 7 per cent of it’s cost of goods sold, a planned 15-per-cent levy on a further US$300-billion worth of Chinese goods would hit most of Best Buy’s bestselling products, such as cellphones and laptops.

Mr. Trump announced the increase to 15 per cent from 10 per cent last Friday, with the first tranche on more than US$125-billion of targeted goods including smart watches, Bluetooth headphones and flat panel TVs, set to go into effect on Sept. 1.

Tariffs on the remainder of the US$300-billion list that includes cellphones, laptops, toys and clothing will kick in on Dec. 15, according to the U.S. Trade Representative’s Office.

Best Buy’s overall same-store sales rose 1.6 per cent in the second quarter ended Aug. 3, missing analysts estimates of a 2.15-per-cent increase, according to IBES data from Refinitiv.

Revenue rose to US$9.54-billion from US$9.38-billion, a touch below expectations of US$9.56-billion.

Excluding one-time items, the company earned US$1.08 a share in the second quarter, beating analysts’ estimates of 99 U.S. cents a share.

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