Bed Bath & Beyond Inc. fell as much as 4.7 percent in New York trading after posting a surprise sales decline and disappointing earnings, a sign the home-products store is struggling to cope with online competition.
First-quarter profit fell to 80 cents a share, the Union, New Jersey-based company said in a statement Wednesday. Analysts projected 86 cents on average. Revenue dropped slightly to $2.74 billion, compared with an average estimate of $2.78 billion.
Bed Bath & Beyond is facing mounting competition from rivals such as Amazon.com Inc., as well as sluggish foot traffic at many shopping centers. To expand its internet offerings, Bed Bath & Beyond recently bought e-commerce site One Kings Lane Inc., bringing it home-decor products and new customers. The acquisition didn’t affect first-quarter earnings, however, because the deal occurred after the quarter ended on May 28.
The stock declined as low as $41.15 on Thursday after the results were released. Bed Bath & Beyond was already down 11 percent this year through Wednesday’s close.
Same-store sales in the U.S., a closely watched measure, decreased 0.5 percent in the quarter. Analysts had projected a 0.7 percent gain.