- The Bed Bath & Beyond inventory fell nearly 30% Thursday after the retailer’s second quarter financial results.
- The household item’s quarterly sales of $ 1.99 billion missed expectations of $ 2.06 billion.
- It reduced its annual outlook as COVID-19 concerns caused lower foot traffic in major states like Texas.
- See more stories on Insider’s company page.
Bed Bath & Beyond shares lost nearly a third of their value on Thursday after the household goods retailer reduced its annual earnings forecast, with second-quarter sales damaged by the ongoing COVID-19 pandemic.
The stock fell as much as 29% to $ 15.70, the lowest price in exactly one year. The jump was on track to wipe out what had been a year-to-date gain of 25% through Wednesday.
Investors drove shares down after the company said it now expects net revenue of $ 8.1 billion to $ 8.3 billion for the fiscal year 2021. The guidance compared to its previous call for sale of as much as $ 8.4 billion.
The revision followed a 26% drop in second-quarter sales to $ 1.99 billion, missing the $ 2.06 billion consensus estimate from FactSet. Sales hit particularly hard in August, as foot traffic in stores “slowed significantly,” the company said, adding that August is the biggest month in its second quarter.
“When COVID-19 fears re-emerged in the midst of the ongoing Delta variant, we experienced a challenging environment,” where slower sales emerged in major states such as Florida, Texas and California.
It also marked unprecedented supply chain problems and rising costs as factors leading to lower-than-expected results. Sales of the same stores fell by 1% in the quarter. Adjusted earnings of $ 0.04 per The stock came well below an estimated $ 0.52 per share. Shares.
Bed Bath & Beyond predicts that sales in the same store will flatten up slightly through the fourth quarter of fiscal year 2021.
The company said it has made progress in its ongoing three-year turnaround program.
“Our buybuy BABY banner continued to build on its positive momentum from the last several quarters and grew by double digits due to strength in apparel and travel equipment and rising market share during the period,” it states.