Many nostalgic retailers that were popular in the early 2000s, such as Blockbuster, Circuit City, and Kmart, have either significantly shrunk their retail footprint across the country or completely gone out of business amid the rise of online shopping and the evolution of digital entertainment.

However, iconic electronics retailer Best Buy, which first opened in the ‘60s, still stands.

💰💸 Don't miss the move: Subscribe to TheStreet's free daily newsletter💰💸

In Best Buy’s fourth-quarter earnings report for 2024, the electronics retailer revealed that it faced a 0.2% year-over-year increase in U.S. comparable sales during the 2024 holiday season after previously suffering 12 consecutive quarters of declining sales.

Related: Best Buy flags an alarming shift in consumer behavior

Despite a slight increase in consumer momentum, Best Buy’s operating income, which is a company’s profit after expenses, declined by about 61% year over year during the fourth quarter.

During an earnings call on March 4, Best Buy CEO Corie Barry said the company saw a “strong customer response” to its Doorbuster deals and Black Friday sales during the holiday season.

“As we have seen for the past several quarters, customers were deal-focused and attracted to more predictable sales moments,” said Barry during the call.

Best Buy CEO has harsh news for customers

However, Best Buy predicts that sales will either remain flat or increase by a small 2% year over year in 2025 as consumers continue to tighten their spending.

“We believe the consumer will remain resilient but is still dealing with high inflation that is driving expenses up across their lives, making them value-focused and thoughtful about big-ticket purchases,” said Barry. “We also still see a consumer that is willing to spend on high price point products when they need to or when there is technology innovation.”

She also warned during the call that customers should soon expect higher prices at Best Buy stores due to President Donald Trump doubling his previous 10% tariff on all goods imported from China to 20% on March 4. Trump also imposed 25% tariffs on all goods from Mexico and Canada.

Tariffs are taxes companies pay to import goods from overseas, and the extra cost is often passed down to consumers. Barry claims that these tariffs will probably have a “negative impact” on Best Buy’s comparable sales.

Related: Wayfair suffers major losses amid a startling consumer trend

“International trade is critically important to our business and industry,” said Barry. “The consumer electronics supply chain is highly global, technical, and complex. China and Mexico remain the number one and number two sources for products we sell, respectively. While Best Buy only directly imports 2% to 3% of our overall assortment, we expect our vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely.”