Bed Bath & Beyond's 2Q profit falls short

Associated Press

UNION, N.J. (AP) — Bed Bath & Beyond Inc.'s shares fell in after-hours trading Wednesday after the housewares retailer reported disappointing second-quarter profit and a weak third-quarter forecast.

The company, based in Union, N.J., earned $224.3 million, or 98 cents per share, for the quarter that ended Aug. 25. That compares with $229.3 million, or 93 cents per share, in the second quarter last year. The company had fewer shares outstanding in this year's quarter.

Sales increased 12 percent to $2.59 billion.

Analysts polled by Factset expected $1.03 per share on sales of $2.56 billion.

Bed Bath & Beyond's sales trends improved during the period. Sales at stores open at least a year increased 3.5 percent. That's a key indicator of retail performance because it strips away results from recently opened or closed stores. Sales also grew with the acquisition of retailer Cost Plus Inc. and distributor Linen Holdings, both in June.

However, selling, general and administrative expenses increased 15 percent year-over-year.

Bed Bath & Beyond expects to earn 99 cents to $1.02 per share for its third quarter. Analysts forecast $1.03 per share.

Shares of the company dropped $3.64, or 5.5 percent, to $65.15 in after-hours trading.