Here's why Bed Bath & Beyond is down 27% on Thursday morning

Bed Bath & Beyond Inc (NASDAQ: BBBY) reported lower-than-expected profit and revenue for its fiscal second quarter on Thursday. Shares of the company tanked more than 25% this morning on dovish guidance for the future.

CEO Tritton’s remarks

Commenting on the supply chain constraints, CEO Mark Tritton said:

Financial performance

Bed Bath & Beyond said it concluded Q2 with $73.2 million in net loss that translates to 72 cents per share. In the comparable quarter last year, it had posted $217.9 million in net income or $1.75 per share.

On an adjusted basis, the domestic merchandise retailer earned 4 cents per share. It generated $1.985 billion in sales versus the year-ago figure of $2.688 billion.

According to FactSet, experts had forecast a significantly higher 52 cents of adjusted EPS on $2.059 billion in sales.

Comparable sales

Bed Bath & Beyond said its comparable sales noted a 1% decline in the recent quarter related to a sharp decline in visits to stores last month. In comparison, analysts had called for a broader 1.5% decline in same-store sales.

Future guidance

For the full financial year, Bed Bath & Beyond now forecasts up to $1.10 of adjusted EPS on $8.1 billion to $8.3 billion in sales, including up to 5 cents per share of adjusted EPS on $1.96 billion to $2.0 billion in sales it expects in Q3.

FactSet consensus for the full year stands at $1.51 of adjusted EPS on $8.312 billion in sales. Analysts are calling for 29 cents of adjusted per-share earnings on $2.021 billion of sales in the current quarter (Q3).