Retail

Big Trouble for Bed Bath & Beyond in Q3

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Bed Bath & Beyond Inc. (NASDAQ: BBBY) released fiscal third-quarter financial results after markets closed Wednesday. The retailer said that it had a net loss of $0.38 per share and $2.8 billion in revenue, compared with consensus estimates that were calling for $0.02 in earnings per share (EPS) and $2.85 billion in revenue. The same period of last year reportedly had $0.02 in EPS and $3.03 billion in revenue.

Net sales decreased roughly 9.0% year over year for the quarter, while comparable sales declined 8.3%.

Looking ahead to the full fiscal year, the company expects its sales and profitability to remain pressured during the fiscal 2019 fourth quarter.  Considering these headwinds reflected in the results to date, management believes it is appropriate to withdraw its fiscal 2019 full-year financial guidance. Consensus estimates are calling for $1.92 in EPS and $11.32 billion in revenue for the 2019 fiscal full year.

Earlier this quarter, the company appointed Mark J. Tritton as president, CEO and a member of its board of directors (effective November 4). Tritton commented on this quarter’s results:

I am delighted to have the opportunity to lead this iconic company. Our performance in the third quarter was unsatisfactory and underscores the imperative for change and strengthens our sense of priorities and purpose.  We must respond to the challenges we face as a business, including pressured sales and profitability, and reconstruct a modern, durable model for long-term profitable growth.  Fortunately, the foundation of the Company’s transformation is well underway, due in large part to the direction and support of the Board.  We will be finalizing the details of our strategic plan over the next few months and appreciate your patience as we embark and pursue this journey to position Bed Bath & Beyond to deliver long-term, sustainable growth.

Shares of Bed Bath & Beyond closed Wednesday at $16.65, with a 52-week range of $7.31 to $19.57. The consensus analyst price target is $14.75. Shares were halted in the after-hours session following the release.

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