Bed Bath & Beyond
were sinking early Tuesday after the home-products retailer warned that fiscal first-quarter earnings won't meet Wall Street's expectation.
Late Monday, the company said it expects to report earnings of 36 cents to 38 cents a share for the first quarter ended June 2. Analysts polled by Thomson Financial had a mean estimate of 39 cents a share.
"Based upon what we have experienced and has been reported by others, the overall retailing environment, especially sales of merchandise related to the home, has been challenging," said Chief Executive Steven Temares in a statement.
Bed Bath & Beyond said same-store sales for the period rose about 1.6%, below the projected increase of 3% to 5%. The company estimated that total sales rose 11% from the year-ago top line of $1.4 billion.
Goldman Sachs downgraded the company to neutral from buy after the announcement.
Shares of Bed Bath & Beyond were down $2.76, or 6.8%, to $37.71 in premarket trading.