Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


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.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Bed Bath & Beyond Drops as Profit Misses on Discounting

Bed Bath & Beyond Inc., the operator of more than 1,000 home-furnishing stores, dropped in New York trading after reporting second-quarter profit that trailed analysts’ estimates.

Net income fell 2.2 percent to $224.3 million from $229.4 million a year earlier, the Union, New Jersey-based company said yesterday in a statement. Profit per share rose to 98 cents from 93 cents a year earlier after the number of shares outstanding declined. Analysts projected $1.02 a share, the average of 25 estimates compiled by Bloomberg.

Bed Bath & Beyond has been resorting to discount coupons to drive traffic, cutting into profit margins, Brian Nagel, an analyst at Oppenheimer & Co. in New York, wrote in a Sept. 18 note. The company’s long-term growth prospects look better as the U.S. housing market picks up, he said.

“For at least the next few quarters we view the potential for outsized sales and earnings at the chain as limited,” Nagel wrote. He rates the shares market perform, the equivalent of a hold.

The shares fell 9.8 percent to $62.08 at the close. Bed Bath & Beyond has gained 7.1 percent this year.

Total revenue rose 12 percent to $2.59 billion. Comparable-store sales rose 3.5 percent in the quarter, trailing the average estimate of 3.8 percent in a Bloomberg survey of six analysts.

Profit Forecast

Bed Bath & Beyond said third-quarter profit may be 99 cents to $1.04 per share. The average of 25 analysts’ estimates compiled by Bloomberg is $1.03 a share.

Chief Executive Officer Steven Temares acquired furniture, food and gifts chain Cost Plus in July for about $495 million, adding 259 stores and a new e-commerce platform, to combat competition from Inc. and Target Corp. Bed Bath & Beyond also will be able to integrate Cost Plus’s specialty-food offerings in its stores to boost traffic, Charles Allen, a Bloomberg Industries analyst, said in May.

The acquisition should add to earnings in the current fiscal year, the company said in a May 9 statement.

Download: Earnings

Please upgrade your Browser

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

Chrome, Firefox, Safari, Opera or Internet Explorer.