Bed Bath & Beyond shares slide 10% premarket after earnings fall short of estimates

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Bed Bath & Beyond Inc. shares slid about 10% in premarket trade Thursday, after the retailer posted weaker-than-expected sales and profit for its fiscal third quarter as the pandemic continued to weigh. The company posted a net loss of $75.4 million, or 61 cents a share, in the quarter to Nov. 29, wider than the loss of $38.6 million, or 31 cents a share, posted in the year-earlier period. Adjusted per-share earnings came to 8 cents, well below the 19 cents FactSet consensus. Sales fell to $2.618 billion from $2.759 billion, below the $2.747 billion FactSet consensus. Same-store sales rose 2%, also below the FactSet consensus of 4.6%. “Given the significant COVID-related headwinds including heavy store traffic declines, major shipping constraints and higher freight costs, the Company is not providing specific sales and earnings guidance for the fiscal 2020 fourth quarter,” the retailer said in a statement. But it expects positive same-store sales in the quarter, while net sales are expected to fall by a double-digit percentage range. Shares have gained 25% in the last 12 months, while the S&P 500 has gained 15%.
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