Bed Bath & Beyond (BBBY, $17.27) misses fiscal Q2 expectations

Bed Bath & Beyond  reported its fiscal second quarter earnings that were lower than expected by analysts. The home goods retail company also cut its full-year profit outlook.

Bed Bath & Beyond’s adjusted earnings for the three months ending in August came in at 4 cents per share, well below the 52 cents per share expected by the Street.

Revenues fell -26% from the year-ago quarter to $1.98 billion, compared to analysts’ estimates of $2.06 billion.

Looking into fiscal year 2022, Bed Bath & Beyond predicts adjusted earnings in the range of 70 cents to $1.10 per share, down from its prior forecast of  $1.40 to $1.55 per share. The company projects net sales in the range of $8.1 billion to $8.3 billion.

CEO Mark Tritton said that  traffic slowed significantly in August and, therefore, sales did not materialize as expected. According to Tritton's statement, the spread of the Delta variant of COVID-19 led to  a challenging environment for the company.

He also mentioned “ unprecedented supply chain challenges” in the industry that led to steeper cost inflation rising by month, especially later in the quarter, beyond the significant increases that were already anticipated by the company.