logo-loader
viewBed Bath & Beyond Inc.

Bed Bath & Beyond misses on 2Q earnings, slashed forecast tied to China tariffs

The specialty retailer lowered its full-year net sales model

Bed Bath & Beyond Store
Its chain of home goods stores include namesake Bed Bath and Beyond and Harmon Face Values

Bed Bath & Beyond Inc (NASDAQ:BBBY) missed analyst estimates in its fiscal second-quarter results and lowered its full-year net sales model, sending its share falling double digits.

The specialty retailer reported earnings of $0.36 per share on revenue of $2.94 billion compared with $0.67 EPS on revenue of $2.94 billion in the previous year’s second quarter.

READ: Ascena Retail Group shares jump after beating Wall Street's fiscal 4Q revenue and profit expectations

The New Jersey-based company fell below Wall Street estimates of $0.50 EPS on revenue of $2.96 billion.

Shares plunged more than 16% in Wednesday after-hours trading and continued falling in Thursday morning trading, down more than 22% to $14.57.

For the year ahead, the retailer lowered its net sales model with comparable sales expected to be relatively flat to last year. Net earnings per diluted share for the full year are expected to be at the low end of its prior range at $2.

The retailer forecast current quarter sales to fall in the mid-single digit range while fourth quarter sales are expected to fall in the high single-digit range, citing the impact of tariffs on imports from China.

"Regarding tariff, everything we know today about the impact on our business we've built into the back half. For us, our direct imports from China represent a relatively small number of business," said CFO Robyn D'Elia during the earnings call.

"We’re considering all of our options in terms of mitigation strategies,” added D’Elia.

The company ended the quarter with $1.1 billion in cash, nearly double the $563 million reported in the previous second quarter.

The board of directors today declared a quarterly dividend of $0.16 per share payable on January 15, 2019 to shareholders of record at the close of business on December 14, 2018.

The retailer operates a chain of home goods stores in the US and Canada, including namesake Bed Bath and Beyond, buybuy BABY, Christmas Tree Shops and Harmon Face Values.

--Updated to include information from earnings call, latest share price

Quick facts: Bed Bath & Beyond Inc.

Price: 14.09 USD

NASDAQ:BBBY
Market: NASDAQ
Market Cap: $1.78 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Black Iron Exploration sign deal to acquires land for...

Black Iron Exploration (TSE:BKI-OTC: BKIRF) CEO Matt Simpson joined Steve Darling from Proactive in Toronto to discuss the company signing a deal with the Ukrainian government to acquire 1263 hectares of land adjacent to their project. Simpson talks about, what he says, is a “Win-Win” for both...

33 minutes ago

2 min read