Best Buy’s Q1 results shows inflation’s bite

By ANNE D’INNOCENZIO
AP Retail Writer

NEW YORK (AP) — Best Buy Co. posted first-quarter results that showed shoppers pulled back on their spending and higher costs ate into profits. The nation’s largest consumer electronics chain also cut its annual outlook on Tuesday, citing a deteriorating economic environment. Best Buy was among a handful of big winners in the pandemic, as shoppers flocked to its stores and website to buy equipment to furnish home offices or cater to their children’s needs for virtual learning. But like many retailers, Best Buy is struggling with rising costs for everything from labor to shipping as supply chain backups hit companies worldwide. The electronics chain also has had to navigate global chip shortages, soaring fuel costs and another round of COVID-19 lockdowns in China.