Bed Bath & Beyond Inc. (NASDAQ: BBBY) stock fell 10.94% on January 7th, 2021 and continued its bullish momentum rising over 2.3% on January 8th, 2020 (as of 12:49 pm GMT-5; Source: Google finance).
The company posted lower than expected results for the third quarter of FY 20 citing the sale of noncore assets like Cost Plus World Market and ongoing store closures that are part of its bigger turnaround plans. For the third quarter that ended Nov. 28, Bed Bath has reported a net loss of $75.44 million compared with a loss of $38.55 million, a year earlier. Same-store sales for its entire business, which includes Buy Buy Baby and Harmon Face Values, rose 2%. Digital sales grew 77% from a year ago, driven by the online growth of 94% at Bed Bath’s namesake banner. Same-store sales, which track sales online and at Bed Bath stores open for at least 12 months, were up 2%, driven online demand from shoppers. Bed Bath gained 2.2 million new digital customers during the third quarter, with 36% of its digital sales fulfilled by stores. Sixteen percent of e-commerce purchases were picked up by customers in stores.
BBBY in the third quarter of FY 20 has reported the adjusted earnings per share of 8 cents, missing the analysts’ estimates for the adjusted earnings per share of 19 cents, according to Refinitiv. The company had reported 5 percent fall in the adjusted revenue to $2.62 billion in the third quarter of FY 20, missing the analysts’ estimates for revenue of $2.75 billion.
The company expects same-store sales during its fiscal fourth quarter to be about in line with a year earlier. Net sales are estimated to be lower by a double-digit percentage, due in part to ongoing closures, the company said. The Analysts had been expecting for a 6% drop in sales, according to Refinitiv. Bed Bath had laid out longer-term financial targets in October calling for same-store sales to be “stable” in fiscal 2021, and rising in the low-to-mid single digits by 2023.
Meanwhile, for fiscal 2021, the company’s Adjusted EBITDA outlook has been enhanced to a range of between $500 million to $525 million from $500 million. Total share repurchase program increases to up to $825 million from up to $675 million; $375 million in total ASR expected to be completed by end of the fourth quarter of fiscal 2020, on or before Feb. 27, 2021.