Bed Bath & Beyond Falls Short on Both Top and Bottom Lines

By Chris Lange Updated Jan 13, 6:29AM EST · Published Jun 22, 4:45PM EDT

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Bed Bath & Beyond Falls Short on Both Top and Bottom Lines — © Thinkstock

[cnxvideo id=”507734″ placement=”ros”]Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported its fiscal first-quarter financial results after the markets closed on Wednesday. The company said that it had $0.80 in earnings per share (EPS) on $2.7 billion in revenue. Thomson Reuters had consensus estimates that called for $0.86 in EPS on $2.78 billion in revenue. The same period from last year had $0.93 in EPS on $2.74 billion in revenue.

Comparable sales are slowing in the first quarter of fiscal 2016 with a decrease of roughly 0.5%, compared with an increase of 2.2% in the prior year period. In the fiscal fourth-quarter (sequentially), comparable sales increased roughly 1.7%, an increase of 2.1% on a constant currency basis, compared with an increase of 3.7% from last year.

As for the comparable sales from customer-facing digital channels, they grew in excess of 20% while comparable sales from stores declined in the low single-digit percentage range during the fiscal first-quarter. In the fiscal fourth quarter, comparable sales from customer-facing digital channels grew in excess of 25% while comparable sales from stores were relatively flat.

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During the first quarter of fiscal 2016, the company repurchased roughly $178 million of its common stock, representing about 3.8 million shares, under its existing $2.5 billion share repurchase authorization. At the end of May, the program had a remaining balance of $2.1 billion, and is expected to be completed in fiscal 2019 or fiscal 2020.

In terms of guidance for the fiscal year the company expects EPS to be in the range of $4.50 to $5.00. There are consensus estimates for the full fiscal year that are calling for $4.99 in EPS on $12.36 billion in revenue.

Shares of Bed Bath & Beyond closed at $43.18, with a consensus analyst price target of $47.74 and a 52-week trading range of $41.26 to $71.20. Following the release of the earnings report, the stock was down 5.4% at $40.85 in the after-hours trading session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.