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

Best Buy, which sources most of its goods from China, has also made efforts to diversify its supply chain and purchase more products from fewer partners to negotiate better terms in a bid to counter higher costs.