Bed Bath & Beyond Inc (NASDAQ: BBBY) reported lower-than-expected profit and revenue for its fiscal second quarter on Thursday. Shares of the company tanked more than 25% this morning on dovish guidance for the future.
CEO Tritton’s remarks
Commenting on the supply chain constraints, CEO Mark Tritton said:
Unprecedented supply chain challenges have been impacting the industry pervasively, and we saw steeper cost inflation escalating by month, especially later in the quarter, beyond the significant increases that we had already anticipated.
Financial performance
Bed Bath & Beyond said it concluded Q2 with $73.2 million in net loss that translates to 72 cents per share. In the comparable quarter last year, it had posted $217.9 million in net income or $1.75 per share.
On an adjusted basis, the domestic merchandise retailer earned 4 cents per share. It generated $1.985 billion in sales versus the year-ago figure of $2.688 billion.
According to FactSet, experts had forecast a significantly higher 52 cents of adjusted EPS on $2.059 billion in sales.
Comparable sales
Bed Bath & Beyond said its comparable sales noted a 1% decline in the recent quarter related to a sharp decline in visits to stores last month. In comparison, analysts had called for a broader 1.5% decline in same-store sales.
Future guidance
For the full financial year, Bed Bath & Beyond now forecasts up to $1.10 of adjusted EPS on $8.1 billion to $8.3 billion in sales, including up to 5 cents per share of adjusted EPS on $1.96 billion to $2.0 billion in sales it expects in Q3.
FactSet consensus for the full year stands at $1.51 of adjusted EPS on $8.312 billion in sales. Analysts are calling for 29 cents of adjusted per-share earnings on $2.021 billion of sales in the current quarter (Q3).
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