Bed Bath & Beyond Falls as Profit Trails Estimates

Bed Bath & Beyond Inc. fell the most in more than 18 months after the retailer reported quarterly net income and forecast fourth-quarter profit that trailed analysts’ estimates.

The shares declined 13 percent to $69.14 at 12:05 p.m. in New York and earlier slid as low as $69 for the largest intraday drop since June 2012.

Net income was $237.2 million, or $1.12 a share, in the third quarter ended Nov. 30, the company said in a statement yesterday. The average projection of 24 analysts was $1.16 a share, according to data compiled by Bloomberg. Earnings in the fourth quarter are forecast to be between $1.60 and $1.67 a share, less than the $1.79 analysts estimated.

The retailer’s results included most of the Black Friday shopping weekend, which saw its first spending decline since 2009 in the four days beginning with the Nov. 28 Thanksgiving holiday. U.S. retail sales rose 2.7 percent in November and December, the smallest increase since 2009, as stores’ profit-eating discounts failed to draw shoppers to malls, researcher ShopperTrak said yesterday.

Bed Bath & Beyond said comparable-store sales in the quarter rose 1.3 percent. Analysts projected a gain of 2.7 percent, the average of 13 estimates compiled by Bloomberg.

Shares of the Union, New Jersey-based company rose 44 percent last year, compared with a 30 percent advance for the Standard & Poor’s 500 Index.