Bed Bath & Beyond Inc.
BBBY,
-2.93%

shares sank 17.1% in Thursday premarket trading after the retailer reported fiscal second-quarter profit and sales that missed expectations and gave guidance below Street consensus. Net loss totaled $73.2 million, or 72 cents per share, after net income of $217.9 million, or $1.75 per share, last year. Adjusted EPS of 4 cents was well below the FactSet consensus for 52 cents. Sales of $1.985 billion was down from $2.688 billion in 2020 and below the Factset consensus for $2.059 billion. Comparable sales fell 1%, which the company attributed to a decline in August traffic. The FactSet consensus was for a 1.5% increase. “As COVID-19 fears re-emerged amid the on-going Delta variant, we experienced a challenging environment,” said Chief Executive Mark Tritton in a statement, explaining the sales and gross margin pressure the company experienced. “This was particularly evident in large, key states such as Florida, Texas and California, which represent a substantial portion of our sales. 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.” Bed Bath & Beyond is guiding for third quarter sales between $1.96 billion to $2.0 billion, flat comparable sales, and adjusted EPS in the range of $0.00 to $0.05. The FactSet consensus is for sales of $2.021 billion, comparable sales growth of 2% and EPS of 29 cents. Bed Bath & Beyond is forecasting full year sales of $8.1 billion to $8.3 billion, flat-to-slightly up comparable sales, and adjusted EPS in the range of $0.70 to $1.10. The FactSet consensus is for sales of $8.312 billion, comparable sales growth of 13.9% and EPS of $1.51. Bed Bath & Beyond shares have gained 25% for the year to date while the S&P 500 index
SPX,
+0.16%

is up 16.1% for the period.

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