Bed Bath & Beyond stock dipped on Thursday, but finished green for the week following the home-goods retailer’s Q3 earnings report missed both top- and bottom-line projections.
Bed Bath & Beyond [$BBBY] is said to have earned an adjusted eight cents a share on revenue that fell 5.3% YOY, to $2.62 billion. Analysts were speculating an EPS of 19 cents on revenue of $2.75 billion.
The company stated that the revenue decline was largely due to store closures and its pivot from noncore businesses. Comparable sales jumped 2% in the quarter, though digital sales soared 77%, with its crown jewel Bed Bath & Beyond stores marking a 94% rise. The company predicts that it added 2.2 million new online customers in the period.
On Thursday, Bed Bath was down 12.9%, at $18.32, in premarket trading after the results. That washout reflects depleted optimism investors have had about the retailer’s comeback story.That enabled investor hope to turn into investor hopium ahead of the report.
Going forward, Bed Bath noted that for Q4, it sees comparable sales to be in line with the year-ago period, with positive comps in December. Yet analysts are readying for same-store sales to increase 3.4%; they dumped 5.6% in Q4 2020.
The company says Q4 net sales look set to fall by a double-digit percentage, given its continuing asset divestitures. Consensus guesstimates call for overall sales of $2.92 billion, a decline of just over 6%. Here’s How Holiday Retail Sales Did Amid The Pandy