Bed Bath & Beyond, Inc. | $BBBY Stock | Shares Sink After Disappointing Q4 Earnings

0
287

Bed Bath & Beyond, Inc. (NASDAQ: BBBY)

 

Bed Bath & Beyond shares fell 13% in after-hours trading on Wednesday. The retailer announced poor same-store sales, which caused a cut of 28% in its profit for fiscal fourth-quarter 2017. The earnings angered investors thus sending the shares tumbling in after-hours trading.

BBBY Earnings & Outlook

Bed Bath & Beyond

BBBY beat Wall Street expectations by posting earnings per share of $1.48 during the quarter. But, that was a sharp drop of 36 cents compared to the $1.84 EPS that the company posted in a similar period last year.

BBBY year-on-year sales finished in-line with analysts’ expectations after increasing by 5.2% to $3.7 billion. However, same-store sales went down by 0.6% finishing below the 2.3% drop analysts’ consensus. The company increased its quarterly dividend to 16 cents per share from 15 cents in the previous quarter.

The company’s investment and cash balances for fiscal 2017 was $744 million. That marked an increase of approximately $166 million versus the $578 million the company had in 2016.

Bed Bath & Beyond CEO Comments

CEO Steve Temares said on the retailer’s earnings conference call that the company had been strategically focusing on strengthening its position as the leader of heartfelt life and home events. Temares said that BBBY has and would continue to make important investments, which are aimed at supporting its mission. He, however, said that some investments had had a negative impact on the company’s profitability and expense structure in Q4 of 2017.

The CEO said that his team was excited by the progress it had made and would keep on creating the foundation needed to expand its position in the home-goods business. He concluded by touching on the company’s vision 2020 roadmap in which it seeks to transform its foundation structure in order to support its goals. The goals include growing its EPS to a huge figure by 2020 as well as cutting down declines in its net earnings and operating profit in 2018 and 2019. 

Bed Bath & Beyond Company Profile

Bed Bath & Beyond, Inc was founded in 1971 by Warren Eisenberg. The headquarters of the company is located in Union, New Jersey. It operates a chain of retail stores that sell domestic merchandise. The company carries out the operations through World Market, Christmas Tree Shops, Bed Bath & Beyond, Harmon or Harmon Face Values, Christmas Tree Shops, Cost Plus World Market, and buybuy BABY.

BBBY is an expert in home furnishings and domestic merchandise such as kitchen textiles, bed linens, general home furnishings, tabletop and kitchen items, bath items, juvenile products, fine tabletop, consumables and basic housewares. –Reuters

IMAGE CREDIT

LEAVE A REPLY