Bed Bath & Beyond (BBBY) lowers Q3 EPS, comps guidance

** charts after guidance **

 

** charts before guidance **

Bed Bath & Beyond lowers Q3 EPS, comps guidance:

The co announced preliminary information for the fiscal third quarter ended November 28, 2015, which included the Thanksgiving holiday as well as the following two shopping days (Black Friday and Saturday), and provided an update on anticipated comparable sales from the beginning of the fourth quarter through Christmas.

• The Company now estimates net sales for Q3 will be +0.3% y/y to ~$3.0 bln vs. the $3.02 bln Capital IQ Consensus Estimate. The Company had previously modeled net sales to increase by ~1.8-4.0%.
• The Company now estimates Q3 comparable sales to have decreased by 0.4%, or relatively flat on a constant currency basis. The 0.4% unfavorable impact of foreign currency fluctuations is consistent with its previous model. Including the impact of foreign currency fluctuations, the Company had previously modeled comparable sales to increase between 1.0-3.0%.
• Based on the lower-than-modeled sales results in the quarter, the Company now estimates Q3 EPS of $1.07-1.10 (Prior guidance $1.14-1.21) vs. the $1.17 Capital IQ Consensus Estimate 

"On the one hand we experienced softer in-store transaction counts, and on the other hand sales from our customer-facing digital channels demonstrated strong growth, in excess of 25%. These mixed results were also impacted by the overall softness reported in the macro-retail environment during the quarter. As the retail environment continues to evolve, we remain focused on positioning our Company for long-term success."

• The Company also noted that comparable sales from the beginning of the fiscal fourth quarter through Christmas are anticipated to increase approximately 1.0%. The Company expects to report its actual results for the fiscal third quarter after the close of trading on January 7, 2016