Bed Bath and Beyond confirms weak Q4

Sales and profits were as bad as Bed Bath & Beyond initially feared due to extensive weather related store closures during the company's fourth quarter ended March 1.

The company said sales during its 13 week fourth quarter declined 5.8% to $3.2 billion while same store sales advanced 1.7%. Profits during the 13 week period declined to $333 million, or $1.60 a share, compared to the 14 week period the prior year when profits totaled $374 million, or $1.68 per share.

The uncharacteristically weak showing from Bed Bath & Beyond was not a surprise as the company had alerted investors to significant weather-related issues March 7. At that time, the retailer warned adverse weather had resulted in 464 times when a store was closed for an entire day and 1,923 times when a store was close for a partial day. The negative impact on same store sales at the time was thought to be in the range of 2% to 2.5% while earnings were expected to suffer a six to seven cents a share hit.

Those expectations proved to be accurate and reflect a situation faced by numerous other retailers who indicated severe weather negatively affected their fourth quarter performance.

Bed Bath and Beyond ended its fiscal year with a total of 1,496 stores, consisting of 1,014 Bed Bath & Beyond stores, 265 stores under the banners of World Market, Cost Plus World Market and Cost Plus, 90 buubuy BABY stores and 77 stores under various Christmas Tree Shops banners.


Login or Register to post a comment.