Bed Bath & Beyond stock slides on mixed 4Q and annual results

Bed Bath & Beyond Inc (NASDAQ:BBBY) shares slipped in extended trading Wednesday, as the company beat analyst expectations for its fiscal fourth-quarter earnings results, however, posted its first annual sales decline in almost three decades.

Shares of the home goods retailer were down 5.7% at $18.30 in after-hours trade. 

In 4Q, ended March 2, 2019, the company reported a net loss of $253.8 million, or $1.92 per diluted share, which included a non-cash goodwill and impairments charge, compared with $194 million, or $1.41 per diluted share, for the fiscal 2017 fourth quarter. 

Excluding the non-cash impairments charge, the home goods retailer reported net income of $158.8 million, or $1.20 per share, beating analyst estimates of $1.11 per share.

READ: Bed Bath & Beyond beats on 3Q earnings; shares jump in after-hours trading

For its 4Q revenue, Bed Bath & Beyond reported revenue of $3.3 billion, a decrease of approximately 11.0% compared to the prior year period, however, it met Street expectations of $3.3 billion. 

The company noted the drop was “primarily due to one less week in the quarter compared to fourteen weeks in fiscal 2017 and a shift in the calendar, moving the post-Thanksgiving holiday sales week out of the fourth quarter.”

The company reported its same-store sales, which measures the company’s existing stores that have operated for more than one year, fell 1.4%. Comparable sales, a closely watched figure in retail, dropped 1.1%. 

Annual sales down

Sales for the year were $12.03 billion, down from $12.35 billion a year earlier. 

“During the fourth quarter and throughout fiscal 2018, we have been driving significant foundational change across our business,” said CEO Steven Temares in a statement. “The pace of our transformation accelerated during fiscal 2018.”

The retailer operates a chain of home goods stores in the US and Canada, including namesake Bed Bath and Beyond, buybuy BABY, Christmas Tree Shops and Harmon Face Values.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Story by ProactiveInvestors