Bed Bath & Beyond Tumbles After Forecast Trails Estimates

Bed Bath & Beyond Inc. (BBBY) fell the most since its stock market debut after forecasting fiscal second- quarter profit that was less than analysts’ estimated amid slowing same-store sales.

The shares declined 17 percent to $61.17 at the close in New York, for the biggest drop since the company first sold shares in a public offering in 1992. The Union, New Jersey-based company has gained 5.5 percent this year.

Profit per share in the quarter ending in August may be 97 cents to $1.03, the company said yesterday in a statement. The average of 24 analysts’ estimates compiled by Bloomberg was $1.08.

Bed Bath & Beyond said comparable-store sales in the first quarter rose 3 percent compared with 7 percent a year earlier. Analysts projected a gain of 3.8 percent, the average of five estimates compiled by Bloomberg.

“Despite the ongoing economic challenges that are affecting consumers, our fundamental business strategy remains unchanged: to offer a broad assortment of merchandise at everyday low prices with superior customer service,” Chief Executive Officer Steven Temares said during a conference call yesterday.

In May, Bed Bath & Beyond agreed to buy Cost Plus Inc. (CPWM) for $495 million in cash to add its World Market and Cost Plus Imports chains. The deal would give Bed Bath & Beyond 295 new stores along with another e-commerce platform to help it compete with retailers such as Inc. and Target Corp. (TGT)

Bed Bath & Beyond had 1,180 stores as of May 26.

To contact the reporter on this story: Leslie Patton in Chicago at

To contact the editor responsible for this story: Robin Ajello at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.