Bed Bath & Beyond Inc. reported losses for its fiscal-first-quarter, as costs related to goodwill impairment and severance tugged at its bottom line. However, adjusted earnings beat estimates.
For the quarter ended June 1, the household-goods retail chain posted a loss of -$371.1 million (or -$2.91 a share), compared to earnings of $43.6 million (or 32 cents) in the year-ago period.
However, adjusting for the impairment charge as well as severance and other costs, Bed Bath & Beyond’s earnings came in at 12 cents a share, which surpassed analysts’ estimates of adjusted earnings of 8 cents per share. Still, the company’s adjusted earnings were much lower from the year-ago quarter’s 38 cents.
Bed Bath & Beyond’s $401 million impairment charge follows a similar non-cash charge of more than $500 million in the previous quarter.
Sales for the latest quarter declined -6.6% year-over-year to $2.57 billion. FactSet's consensus estimate was $2.58 billion.
The company’s comparable-store sales fell -6.6% in the quarter.
Looking ahead, the company projects to the lower end of its previously provided range of $2.11 to $2.20 of profit, excluding the impairments and costs, for the full fiscal year.