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Bed Bath & Beyond Plunges After-Hours on Big Earnings Miss, Withdrawn Guidance

Bed Bath & Beyond expects sales and profitability to 'remain pressured' during its fiscal fourth quarter.

Shares of Bed Bath & Beyond  (BBBY) - Get Report fell sharply in after-hours trading Wednesday after the retailer posted an unexpected loss and said it was withdrawing its full-year guidance because of weakness in the current quarter.

The stock fell $2, or 12% to $14.65 in after-hours trading.

Bed Bath & Beyond posted an adjusted fiscal third-quarter loss of 38 cents a share, vs. analyst estimates of a profit of 2 cents a share for the period. Revenue came in at $2.76 billion vs. expectations of $2.85 billion.

The company withdrew its full-year guidance, saying it expects sales and profitability “to remain pressured” during the current quarter.

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"Our performance in the third quarter was unsatisfactory,” said the company’s recently appointed CEO, Mark Tritton in a statement. “We must respond to the challenges we face as a business, including pressured sales and profitability,” he added. Tritton was named CEO in early October, effective Nov. 4. He was previously executive vice president and chief merchandising officer at Target  (TGT) - Get Report.

Bed Bath & Beyond said comparable sales in the fiscal third quarter fell 8.3%, hurt by the late occurrence of Thanksgiving. Adjusting for the calendar shift, comparable sales fell 3.6%.