Bed Bath & Beyond
is up about 13% even after the company’s financial results fell short of analysts’ expectations and management warned of a potential loss for the full year, amid pressure from promotions, store traffic, and supply-chain crunches.
The stock was down 10.8% to $13.36 in premarket trading, and now is up to about $15.04, posted a net loss of $276 million for its fiscal third quarter, ended Nov. 27. The retailer reported an adjusted loss of 25 cents a share, while the consensus call among analysts tracked by FactSet was for a profit of a penny per share.
A lack of inventory due to supply-chain problems cost Bed Bath & Beyond (ticker: BBBY) about $100 million in sales, Chief Executive Mark Tritton said in a news release. Issues escalated during December, the company said, an indication that results for the current quarter could be hit as well.
Comparable-store sales, also known as same-store sales, declined 7% in the quarter.
The company said it may slide into the red for fiscal 2021, predicting a per-share result between a loss of 15 cents and breaking even. It had previously forecast a profit of 70 cents to $1.10 a share.
The company’s earnings follow a drop in the stock on Wednesday of 11%. The stock has fallen 16% from one year ago.
This is a developing story. Check back for updates.
Write to Logan Moore at firstname.lastname@example.org