Shares of Bed Bath & Beyond Inc. (BBBY) are declining 13% in pre-market today, after the home improvement retailer reported a wider loss for the third quarter, hurt by charges related to its restructuring and transformation initiatives.
Both adjusted earnings per share and net sales missed analysts’ expectations. The company also did not provide specific financial guidance, due to the significant COVID-19-related headwinds.
The stock is currently trading at $18.20, down $2.83 or 13.46% in the pre-market session Thursday. Trading volume was 19 million versus an average volume of 8.25 million shares.
Q3 net loss was $75.44 million or $0.61 per share, sharply widener than $38.55 million or $0.31 per share in the prior-year quarter. Excluding items, adjusted net income was $10.43 million or $0.08 per share, versus a loss of $45.90 million or $0.38 per share last year.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.19 per share for the quarter. Analysts’ estimates typically exclude special items.
Net sales declined 5% to $2.62 billion from $2.76 billion last year. Analysts expected revenues of $2.75 billion for the quarter.
The decline in sales was attributable to the significant portfolio transformation, including the planned divestitures of non-core banners and store closing activity as part of the company’s network optimization initiative.
Source: Read Full Article