Here's Why Bed Bath & Beyond (BBBY) Stock Crashed 28% in Pre-Open Trading

Shares of Bed Bath & Beyond (NASDAQ: BBBY) are down roughly 28% in pre-open Thursday trading after the company presented disappointing FQ2 results.

BBBY reported earnings per share (EPS) of just $0.04 to miss on the analyst consensus of $0.52. Revenue for the quarter came in at $1.99 billion versus the consensus estimate of $2.06 billion.

“While our results this quarter were below expectations, we remain confident in our multi-year transformation. Following solid growth in June, we saw unexpected, external disruptive forces towards the end of the quarter that impacted our outcome. In August, the final and largest month of our second fiscal period, traffic slowed significantly and, therefore, sales did not materialize as we had anticipated,” said Mark Tritton, Bed Bath & Beyond's President and CEO.

“As COVID-19 fears re-emerged amid the on-going Delta variant, we experienced a challenging environment. This was particularly evident in large, key states such as Florida, Texas and California, which represent a substantial portion of our sales. Furthermore, unprecedented supply chain challenges have been impacting the industry pervasively, and we saw steeper cost inflation escalating by month, especially later in the quarter, beyond the significant increases that we had already anticipated. This outpaced our plans to offset these headwinds. These factors impacted sales and gross margin,” Tritton added.

For this quarter, BBBY sees Q3 2021 EPS in the range between $0.00 and $0.05, much lower than the consensus of $0.28. Sales are expected between $1.96 and $2 billion, versus the consensus of $2.02 billion.

On a full-year basis, Bed Bath & Beyond forecasts EPS in the range of $0.70 and $1.10 while the Street was calling for $1.51. The company expects full-year sales of $8.1 billion to $8.3 billion, versus the consensus of $8.31 billion.

As of yesterday, shares were up 23.1% YTD.

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