Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Bed Bath & Beyond Tumbles After Forecast Trails Estimates

Bed Bath & Beyond Tumbles After Profit Forecast Trails Estimates
Bed Bath & Beyond Inc. signage is displayed outside of a store in San Francisco. Photographer: David Paul Morris/Bloomberg

June 21 (Bloomberg) -- Bed Bath & Beyond Inc. 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. 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 Amazon.com Inc. and Target Corp.

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

To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.