Bed Bath & Beyond Inc. (NASDAQ;BBBY) saw its shares plunge further premarket Wednesday after the company released below market second quarter results yesterday.
Blaming restructuring and Hurricane Harvey, the retailer said second-quarter profit came in at US$94.2mln, or 67 US cents a share, on sales of US$2.9bn, against a year ago’s US$1.11 a share on revenue of US$2.99bn.
This was well below Wall Street’s expectations for 93 US cents a share on sales of US$3bn.
Transformational initiatives underway
Bed Bath & Beyond said restructuring charges (8 US cents a share), Hurricane Harvey impacts (2 US cents a share) and a new accounting standard (a penny a share) impacted the results.
The retailer said in a statement that it "is undertaking a number of transformational initiatives," which it will discuss in a conference call later Wednesday.
Trading was halted for the stock ahead of the announcement. Its share price dipped more than 18% in after-hours after trading resumed; shares closed down 1% at US$27.03 on Tuesday.
In premarket Wednesday, its shares plunged further, down 15.46% at US$22.85.