UPDATE: Bed Bath & Beyond earnings miss widely, stock plunges 18%
Bed Bath & Beyond Inc. (BBBY) reported earnings far below expectations Tuesday, citing restructuring- and hurricane-related issues, and promised information on new initiatives later in the afternoon as shares plummeted. The retailer announced fiscal second-quarter profit of $94.2 million, or 67 cents a share, on sales of $2.9 billion, down from earnings of $1.11 a share on revenue of $2.99 billion in the year-ago quarter. Analysts on average expected earnings of 93 cents a share on sales of $3 billion, according to FactSet. Bed Bath & Beyond listed issues that caused the profit miss and their effects, including restructuring charges (8 cents a share), Hurricane Harvey impacts (2 cents a share) and a new accounting standard (a penny a share). The retailer said that it "is undertaking a number of transformational initiatives," which it will discuss in a conference call at 5 p.m. Eastern. Trading was halted for the stock ahead of the announcement, and the price plunged more than 18% in after-hours action after trading resumed; shares closed with a 1% decline at $27.03 Tuesday after reaching a 52-week intraday low of $26.54.
-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
09-19-17 1637ETCopyright (c) 2017 Dow Jones & Company, Inc.