Bed Bath & Beyond (BBBY) - Get Bed Bath & Beyond Inc. Report shares plunged Thursday after the home retailer posted weaker-than-expected second quarter earnings, and slashed its full-year profit outlook, owing to steeper cost inflation and a significant slowdown in store traffic.
Bed Bath & Beyond said adjusted earnings for the three months ending in August, the group's fiscal second quarter, came in at 4 cents per share, well shy of the 52 cents per share Street consensus forecast. Group revenues, Bed Bath & Beyond said, slumped 26% from last year to $1.98 billion, again missing analysts' estimates of a $2.06 billion tally.
Looking into the 2022 fiscal year, which ends in February, Bed Bath & Beyond said it sees net sales in the region of $8.1 billion to $8.3 billion and adjusted earnings of between 70 cents and $1.10 per share, down from its June forecast of between $1.40 to $1.55 per share.
"While our results this quarter were below expectations, we remain confident in our multi-year transformation," said CEO Mark Tritton. "Following solid growth in June, we saw unexpected, external disruptive forces towards the end of the quarter that impacted our outcome."
"In August, the final and largest month of our second fiscal period, traffic slowed significantly and, therefore, sales did not materialize as we had anticipated," he added. "As COVID-19 fears re-emerged amid the on-going Delta variant, we experienced a challenging environment."
"Furthermore, 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,' Tritton noted. "This outpaced our plans to offset these headwinds."
Bed, Bath & Beyond shares were marked 26.1% lower in early trading Thursday immediately following the earnings release to change hands at $16.35 each, a move that would extend the stock's six-month decline to around 44%.