Bed Bath & Beyond shares tank as supply chain issues hit sales, inflation eats into profits

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People walk out of a Bed Bath & Beyond store amid the coronavirus disease (COVID-19) pandemic in New York, January 27, 2021.
Carlo Allegri | Reuters

Bed Bath & Beyond shares tanked more than 17% in premarket trading Thursday as the company said it saw a steep drop-off in traffic in August, dealing a blow to its fiscal second-quarter results.

The big-box retailer is also dealing with industry-wide supply chain complications, which Chief Executive Mark Tritton said have been “pervasive.”

And the company saw steeper inflation costs escalating over the summer months, especially toward the end of its second quarter in August, Tritton said. This ate into sales and profits, he said.

Here’s how Bed Bath & Beyond did in its second quarter ended Aug. 28 compared with what Wall Street was expecting, based on a Refinitiv survey of analysts:

  • Earnings per share: 4 cents adjusted vs. 52 cents expected
  • Revenue: $1.99 billion vs. $2.06 billion expected

Find the full press release from Bed Bath & Beyond here.

This story is developing. Please check back for updates.

Finance

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