UNION, N.J. (AP) — Shares of Bed Bath & Beyond Inc. dropped nearly 11 percent in after-hours trading Wednesday after the retailer offered an earnings outlook that fell short of analysts' expectations.
The company, based in Union, N.J., reported after the market closed that it earned $206.8 million, or 89 cents per share, for the quarter that ended May 26. That's up from $180.6 million, or 72 cents per share, in the same quarter last year. The results beat the 84 cents per share that analysts polled by FactSet forecast.
But the company disappointed investors as it said it expects to earn 97 cents to $1.03 per share in its fiscal second quarter. Analysts were expecting $1.08 per share.
Revenue grew by 5 percent to $2.22 billion. That too was below the $2.24 billion Wall Street forecast.
Bed Bath & Beyond said sales at stores open at least a year increased 3 percent compared to a year ago. That number is considered a key indicator of financial health, because it strips away the effect of recently opened and closed stores.
The company runs more than 1,000 stores nationwide under the Bed Bath & Beyond, Christmas Tree Shops, buybuy Baby, Harmon and Home & More banners.
Bed Bath & Beyond is expanding its reach with several recent deals. It announced in May that it will buy home decor retailer Cost Plus Inc. for about $495 million. This month it said it will buy textile company Linen Holdings LLC.
Bed Bath & Beyond shares fell $8.02, or 10.9 percent, to $65.65 in after-hours trading.