Bed Bath & Beyond posts surprise GAAP loss, board OKs dividend increase
Shares of Bed Bath & Beyond Inc. (BBBY) rose more than 7% in the extended session Wednesday after the retailer posted a surprise fiscal fourth-quarter loss but its adjusted earnings surpassed Wall Street forecasts and sales came in line with expectations. Bed Bath & Beyond said it lost $253.8 million, or $1.92 a share, in the quarter, versus earnings of $194 million, or $1.41 a share, in the year-ago period. Adjusted for a non-cash impairment charge and other one-time items, Bed Bath & Beyond earned $1.20 a share. Sales reached $3.33 billion, down 11% from a year ago. Analysts polled by FactSet had expected GAAP earnings of $1.12 a share and adjusted earnings of $1.11 a share on sales of $3.33 billion for the company. Comparable-store sales fell 1.4% in the quarter, compared with expectations of a decline around 1.3%. The company also said its board of directors authorized a dividend increase to 17 cents a share from 16 cents a share. The dividend is payable July 16 to shareholders of record on June 14. In the same statement, the board said the company's corporate governance review is ongoing, and Bed Bath & Beyond plans to announce additional changes to the board, its structure, and compensation "in the near future." Gains slipped after that first post-results burst and shares were recently up 0.5%. The stock ended the regular trading day up 5%.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
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