BBBY stock is one of the biggest losers on Thursday after retail major Bed Bath & Beyond Inc. (NASDAQ:BBBY) revealed its earnings for the third quarter, which proved to be a disappointment. Moreover, the company also withdrew its projections for the full fiscal year of 2019 and went on to state that it would divulge its strategic goals for 2020 later.
Reports Surprise Q3 Loss
The biggest story of the day for the company was its third-quarter earnings. The earnings, as well as revenue, fell short of Wall Street analysts’ expectations, and BBBY stock tanked significantly thereafter.
In the third quarter financial results, the company posted $2.76 billion in revenue, which proved to be well short of analysts’ estimates of $2.85 billion for the quarter. The losses per share of 38 cents proved to be a major blow for investors as well. Analysts had actually expected Bed Bath & Beyond to earn 2 cents a share in the quarter. The same-store sales declined by as much as 8.3% in the quarter, and that proved to be worse than analysts’ estimates of 5% as well.
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BBBY stock slumped by as much as 18.30% to $13.59 in early trade on Thursday, and it remains to be seen how the stock will end the week.
It goes without saying that the company’s performance in the quarter was a major disappointment, and Mark Tritton, the Chief Executive Officer, said as much. He said that the performance has been unsatisfactory, and Bed Bath & Beyond would need to come up with a viable business model in order to ensure long-term growth for the retailer.
In the same quarter, the company’s losses ballooned to $38.6 million, and that is in stark contrast to the year-ago period when the company had actually earned $24.4 million. Bed Bath & Beyond stated that the sales had been affected by the fact that Thanksgiving Day fell later than usual this year.
Despite today’s slump, BBBY stock is still up over 85% from its 52-week low of $7.31 in mid-August.
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