Bed Bath & Beyond Swings to a Loss in 1Q, Lowers Fiscal Year Outlook Ranges

By Aisha Al-Muslim

Bed Bath & Beyond Inc. (BBBY) swung to a loss in the latest quarter as the home goods retailer was negatively affected by impairment, severance and shareholder activity costs.

The Union, N.J.-based company Wednesday posted a net loss for the first quarter of $371.1 million, or $2.91 a share, compared with a profit of $43.6 million, or 32 cents a share, a year earlier.

The net loss in the quarter included an unfavorable impact of $3.03 a share due to impairment of goodwill and other intangible assets, as well as severance and shareholder activity costs incurred during the period.

Excluding those one-time costs, adjusted earnings per share were 12 cents, above the 8 cents a share analysts polled by Refinitiv were looking for.

Net sales dropped 6.6% to $2.57 billion, within range of the consensus forecast of $2.58 billion. The company operates under banners such as Bed Bath & Beyond, Harmon Face Values and buybuy BABY.

Comparable sales fell 6.6%, higher than the FactSet estimate of a drop of 5.5%.

For fiscal 2019, excluding the goodwill and other impairments, severance and shareholder activity costs, the company is now modeling its adjusted earnings per share and net sales will be at the lower end of its previously provided ranges.

Adjusted earnings per share was previously forecast to be between $2.11 and $2.20, while net sales was expected to reach $11.4 billion to $11.7 billion for the fiscal year.

Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com

(END) Dow Jones Newswires

July 10, 2019 16:52 ET (20:52 GMT)

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