The company’s profit fell by almost 50 percent compared to a year ago. Its stock sank 21.2 percent to $14.81 in very heavy trading. It’s down about 33 percent in 2018.
The company now expects to report earnings of about $2 a share for the current fiscal year. Three months ago, it forecast earnings in the “low-to-mid $2 range,” and analysts surveyed by FactSet were projecting net income of $2.28 per share on average. Bed Bath & Beyond also cut its revenue forecasts.
Bed Bath & Beyond, which traded above $75 in early 2015, fell to its lowest level since early 2000.
KeyBanc analyst Bradley Thomas said competition for Bed Bath & Beyond from both online and physical retailers is getting worse. Thomas said the company’s profitability has fallen for 26 quarters in a row, a streak stretching back six and a half years. He expects that to continue because Bed Bath & Beyond needs to keep investing in its business.