Bed Bath & Beyond Inc (NASDAQ:BBBY) shares slipped after the company beat analyst expectations late Wednesday for its fiscal fourth-quarter earnings results, however, posted its first annual sales decline in almost three decades.
Shares of the home goods retailer sank 8.8% to $17.71.
In the fourth quarter, ended March 2, 2019, the company reported a net loss of $253.8 million, or $1.92 per diluted share, which included a non-cash goodwill and impairments charge, compared with $194 million, or $1.41 per diluted share, for the fiscal 2017 fourth quarter.
Excluding the non-cash impairments charge, the home goods retailer reported net income of $158.8 million, or $1.20 per share, beating analyst estimates of $1.11 per share.
For its fourth quarter revenue, Bed Bath & Beyond reported revenue of $3.3 billion, a decrease of approximately 11.0% compared to the prior year period, however, it met Street expectations of $3.3 billion.
The company noted the drop was "primarily due to one less week in the quarter compared to fourteen weeks in fiscal 2017 and a shift in the calendar, moving the post-Thanksgiving holiday sales week out of the fourth quarter."
The company reported its same-store sales, which measures the company's existing stores that have operated for more than one year, fell 1.4%. Comparable sales, a closely watched figure in retail, dropped 1.1%.
Annual sales down
Sales for the year were $12.03 billion, down from $12.35 billion a year earlier.
"During the fourth quarter and throughout fiscal 2018, we have been driving significant foundational change across our business," said CEO Steven Temares in a statement. "The pace of our transformation accelerated during fiscal 2018."
Investors weren't happy. Legion Partners, Macellum Advisors and Ancora Advisors released a group statement Thursday calling for new leadership.
"Under CEO Steven Temares’ direction, the company has fallen far behind retail peers and the operating deterioration is accelerating," the companies said.
The group was also displeased to learn that the retailer proposed reducing coupons in order to increase profits.
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.
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