- Bed Bath & Beyond slightly missed on sales but beat on profits in the third quarter.
- The retailer’s comparable sales decline was worse than expected.
- The company maintained its earnings guidance that topped Wall Street estimates.
- Watch Bed Bath & Beyond trade live.
Bed Bath & Beyond soared 9% to $US13.36 a share early Thursday as investors brushed off soft sales and instead focused on its better-than-expected profit.
The home-goods seller announced late Wednesday that it earned $US0.18 a share in the third quarter – $US0.01 better than the Wall Street consensus, according to Bloomberg data. Its revenue totaled $US3.03 billion, slightly missing the $US3.04 billion that was expected.
But the results weren’t all good. The company’s same-store sales declined 1.8%, missing the 0.2% decrease that analysts estimated.
Looking ahead, Bed Bath & Beyond maintained its earnings guidance of $US2 per share, topping the $US1.97 that analysts were expecting.
The company’s guidance reflects many factors, including “the holiday selling season; the continuation of trends it has been experiencing; and actions being taken in support of the company’s stronger bias towards prioritising long-term profitability over near-term sales growth,” said Bed Bath & Beyond in a press release.
But at least one Wall Street analyst was sceptical of the plan.
Matuszewski maintained his “hold” position and lowered his price target from $US16 to $US15 – 22% above where shares were trading on Wednesday.
Bed Bath & Beyond was down 34% in the past year.
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