Bed Bath & Beyond Slumps on 'Short-Term Pain' Warning

Shares of home goods retailer Bed Bath & Beyond come under pressure after it reports same-store sales for December and January fell 5.4%.
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Shares of Bed Bath & Beyond (BBBY) - Get Report fell sharply in after-hours trading Tuesday after the home goods retailer said same-store sales adjusted for an unusually late Cyber Monday fell 13% for the first two months of its fiscal fourth quarter.

Shares lost $3.10, or 21%, to $11.75 in after-hours action. 

The company said in a statement that comparable sales for December and January fell 5.4%. However, those results included the shift of the unusually late Cyber Monday shopping week into its fourth quarter. After compensating for that, comparable sales fell 13% for the first two months of its fiscal fourth quarter. 

"We are experiencing short-term pain in our efforts to stabilize the business, including the pressures of store traffic trends coupled with our own executional challenges," Mark J. Tritton, president and CEO of Bed Bath & Beyond, said in the statement.

The company also said "inventory within certain key categories in the Bed Bath & Beyond assortment was too low or out-of-stock during the period."

The company said  comparable sales from its digital channels rose "approximately 20%." 

A month ago, shares of Bed Bath & Beyond were hit hard after the retailer posted an unexpected loss for its fiscal third-quarter and said it was withdrawing its full-year guidance because of weakness in the current quarter.

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.

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.