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Shares in Bed, Bath & Beyond fall after mixed 1Q earnings

Published 06/24/2015, 06:42 PM
Updated 06/24/2015, 06:48 PM
Bed, Bath & Beyond saw its 1Q sales dampened by a weaker Canadian dollar
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Investing.com -- Shares in Bed Bath & Beyond Inc (NASDAQ:BBBY) fell nearly 2.5% in after-hours trading after the New Jersey-based domestic merchandise retail chain posted mixed quarterly earnings on Wednesday.

For the first quarter which ended on May 30, Bed, Bath & Beyond same-stores sales rose 2.2%, up from 0.4% during its opening quarter of 2014. The sales were also tamped down by a negative 0.3% foreign currency translation impact from a weaker Canadian dollar.

In recent periods, Bed, Bath & Beyond like many other retailers, has fallen victim to lower margins from expanded discounts, as well as higher e-commerce activity.

Bed, Bath & Beyond company officials devised a model for first and second quarter, as well as full-year guidance to determine net earnings per diluted share. For the quarter, Bed, Bath & Beyond posted net earnings of $158.5 million, down from $187.1 million during the first quarter of 2014. The company's per-share earnings remained relatively unchanged at 0.93.

"The Company is modeling a 2.0% to 3.0% increase for comparable sales for the fiscal 2015 second quarter and continues to model a 2.0% to 3.0% increase for the remainder of the year," Bed Bath and Beyond said in a statement. "Net earnings per diluted share are modeled to be in the range of $1.18 to $1.23 for the fiscal 2015 second quarter and to be between relatively flat and a mid-single digit percentage increase for the fiscal full year."

In the current period, Bed, Bath & Beyond predicts earnings per share of 1.18-1.23, below analysts' expectations of 1.23 for the quarter.

Shares in Bed, Bath & Beyond dipped 1.75 or 2.49% to 70.34 in after-hours.

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