Shares of Bed Bath & Beyond Inc. (NASDAQ: BBBY) plunged on Thursday after the company provided a weak guidance for fiscal 2018.
The retailer said in the conference call that the company forecasted net earnings per diluted share to be in the low-to-mid $2.00 range for the fiscal 2018, compared with analysts’ estimate of $2.76 a share, according to a Thomson Reuters survey. The company posted adjusted earnings per share of $3.12 in fiscal 2017.
Bed Bath & Beyond shares fell as much as 18 percent to $17.46 in the early trading on Thursday.
However, the company posted better-than-expected fourth-quarter revenue and earnings for fiscal 2017.
Net revenue rose 5.2 percent to $3.72 billion in the quarter ended March 3, 2018, beating analysts’ estimates of $3.68 billion.
Net earnings were $1.41 per diluted share in the fiscal 2017 fourth quarter. Excluding certain items, the company earned $1.48 per share, also topping expectation of $1.39 per share.
According to CNBC, Neil Saunders, managing director of GlobalData Retail, said in an email: "Too many of Bed Bath & Beyond's stores — especially older ones — are a mess. They are a hodge-podge of product, tightly crammed into a space that is largely devoid of inspiration. This makes them hard and sometimes unpleasant to shop"