On Thursday, shares of Bed Bath & Beyond (NASDAQ:BBBY) are plummeting, down about 8.4% to $31.20 per share in after-hours trading after the company reported disappointing first-quarter fiscal 2017 financial results. BBBY was down over 11% at one point in extended trading.
Bed Bath & Beyond reported earnings of 58 cents per share (this number excludes 5 cents from non-recurring items), which missed the Zacks Consensus Estimate of 66 cents per share. Net income was $75.28 million for the quarter.
For the same period last year, the company reported net income of $122.62 million, or 80 cents per share.
Revenues were $2.74 billion for Q1, just missing our consensus estimate of $2.79 billion. Comparable sales also missed estimates, declining by 2%; however, comps from customer-facing digital channels continued to show strong growth, increasing over 20% during the quarter.
“[W]hile the Company continued to have strong growth in its customer-facing-digital channels this quarter, the Company did experience increased softness in transactions in stores, as well as higher net-direct-to-customer shipping expense, coupon expense, and advertising costs during the quarter,” said Bed Bath & Beyond in its earnings release.
“It remains to be seen whether these challenges were more pronounced in, or unique to, the first quarter due to the smaller sales base in this period, and/or a later start to the summer selling period,” the company continued.
Bed Bath & Beyond also declared a quarterly dividend of 15 cents per share.
The company is currently a #4 (Sell) on the Zacks Rank, with a VGM score of ‘A.’
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Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report
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