Bed Bath & Beyond (BBBY) shares insight on supply chain issues

Shares of Bed Bath & Beyond fell more than 20% in pre-market trading on Thursday as the company said it saw a sharp drop in traffic in August, dealing a blow to its second-quarter tax results.

The big box retailer also faces industry-wide supply chain complications, which CEO Mark Tritton said are “pervasive.”

And the company saw its inflation costs rise over the summer months, particularly towards the end of its second quarter in August, Tritton said. This reduced sales and profits, he said.

In the grip of all of these hurdles, Bed Bath & Beyond has slashed its revenue and profit outlook for the year, and its guidance for the third quarter looks disappointing.

Here’s how Bed Bath & Beyond performed in its second quarter ended Aug. 28 compared to what Wall Street expected, based on a Refinitiv survey of analysts:

• Earnings per share: 4 cents adjusted vs. 52 cents expected
• Revenue: $ 1.99 billion vs. $ 2.06 billion expected

In the most recent period, Bed Bath & Beyond lost $ 73.2 million, or 72 cents per share, against net income of $ 217.9 million, or $ 1.75 per share, a year earlier . Excluding one-off items, the company gained 4 cents per share, which was lower than the 52 cents expected by analysts.

Revenue fell 26% to $ 1.99 billion from $ 2.69 billion a year earlier. This came below estimates of $ 2.06 billion.

“While our results this quarter are below expectations, we remain confident in our multi-year transformation,” Tritton said in a press release.

Bed Bath & Beyond has remodeled its stores and launched in-house brands that sell everything from bath towels and kitchenware to dorm room decorations. In the previous quarter, it looked like these efforts were paying off and the business was gaining momentum.

The company expects adjusted third-quarter profit to be between breakeven and 5 cents per share, with sales ranging from $ 1.96 billion to $ 2 billion. Analysts were looking for a profit of 28 cents a share on sales of $ 2.02 billion, according to data from Refinitiv.

For the year, Bed Bath & Beyond has lowered its expectations and is now looking to earn between 70 cents and $ 1.10 per share, on an adjusted basis, on sales of $ 8.1 billion to $ 8.3 billion.

Previously, he claimed adjusted annual earnings of between $ 1.40 and $ 1.55 per share, on sales of $ 8.2 billion to $ 8.4 billion.

Analysts were forecasting adjusted earnings per share of $ 1.51 on revenue of $ 8.31 billion for fiscal 2021.

Find the full Bed Bath & Beyond press release here.

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