The shares of Bed Bath & Beyond are down by more than 25% at Thursday’s pre-market trading as the company reports that supply chain issues have affected its sales.
Supply Chain Issues Affects Sales
The shares of Bed Bath & Beyond have been underperforming over the past few hours after the company reported that supply chain issues had affected its sales in recent months. The company’s stock price is down by more than 20% at Thursday’s pre-market trading session, making it one of the worst performers today.
The decline in traffic last month affected Bed Bath & Beyond’s fiscal second-quarter sales. Chief Executive Mark Tritton said the big-box retailer is currently facing some supply chain issues. Furthermore, the rising inflation levels have negatively affected Bed Bath & Beyond’s revenue in the previous quarter.
According to Bed Bath & Beyond’s earnings report, the revenue in the previous quarter was $1.99 billion, which is lower than the $2.06 billion expected by Wall Street analysts. The company’s adjusted earnings per share in the fiscal second quarter was 4 cents, which is also lower than the 52 cents that were estimated by the market analysts.
In the last quarter, Bed Bath & Beyond lost roughly $73 million or 72 cents per share. This is poor considering it made a net income of $217.9 million, or $1.75 per share in the same period last year. Its revenue also declined by 26% from the same quarter last year.
BBBY Stock Price Dips By More Than 25%
These poor performances have led Bed Bath & Beyond to slash its revenue and earnings outlook for the year. Furthermore, the company’s third-quarter guidance looks underwhelming, indicating that it doesn’t see the situation improving anytime soon.
BBBY’s price is down by 28% in Thursday’s pre-market trading session. The company’s stock was trading at $22 at the close of the market on Wednesday, but it is now trading at $15.87 per share. Year-to-date, BBBY is down by roughly 7%. It started in 2021 trading at $18 per share, but it is now trading below that level.
With its current outlook, it is highly likely that the shares of Bed Bath & Beyond could suffer more losses over the coming days and months.
This article was originally posted on FX Empire