Bed Bath & Beyond is getting rocked after giving disappointing guidance (BBBY)

Bed Bath & Beyond was down more than 18% Thursday morning after giving disappointing full-year 2018 guidance. 

The retailer earned an adjusted $1.48 a share, outpacing the $1.39 that analysts surveyed by Bloomberg were expecting. The results, however, were way below last year's fourth-quarter earnings of $1.84. Revenue of $3.72 billion topped the $3.68 billion that was anticipated.

Same-store sales for the fourth-quarter also beat, coming in at -0.6% versus a year ago, easily surpassing the 2.3% drop that was expected.

RELATED: Retailers that filed for bankruptcy in 2017

Retailers that filed for bankruptcy in 2017
See Gallery
Retailers that filed for bankruptcy in 2017

Gordmans Stores

REUTERS/Rick Wilking

Gander Mountain


General Wireless Operations (formerly RadioShack)



Photographer: Daniel Acker/Bloomberg via Getty Images

BCBG Max Azria

(Photo by Rob Kim/FilmMagic)

MC Sports


Eastern Outfitters


Wet Seal

(Photo by Justin Sullivan/Getty Images)

The Limited

(Photo by Jb Reed/Bloomberg via Getty Images)


Photographer: David Paul Morris/Bloomberg via Getty Images


But the retailer's guidance disappointed. Bed Bath & Beyond guided full-year 2018 revenue in the "low-to-mid $2.00 range," missing the $2.77 that analysts were looking for. 

And things may get worse for the company, according to a note from Credit Suisse analyst Seth Sigman. "We see EPS declining in 2018, again in 2019, and it's difficult at this stage to envision a return to sustained positive comps while also stabilizing profit," Sigman wrote.

Sigman said that although the company laid out a plan "differentiating its assortment, building out deeper sourcing capabilities, improving service and store experience," he isn't convinced of a turnaround.   

He added that "there is little room for error, particularly as the pressures from competitive landscape intensify."

Bed Bath & Beyond is down more than 20% on the year. 

See Also:

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.