(Reuters) - Shares of Bed Bath & Beyond Inc (BBBY.O) fell 26% on Tuesday after the home furnishing retailer said sales in the first two months of the final quarter were hit by increased promotions, falling store traffic and inventory management issues.
The company said same-store sales for December and January fell 5.4%. Analysts on average were expecting a drop of 3.97% for the fourth quarter, according to IBES data from Refinitiv.
“We are experiencing short-term pain in our efforts to stabilize the business, including the pressures of store traffic trends coupled with our own executional challenges”, Chief Executive Officer Mark Tritton said.
The company said product availability leading into the holiday period was also a contributing factor, as inventory within certain categories was too low or out-of-stock.
Bed Bath & Beyond is set to report its fourth-quarter earnings on April 15.
Shares of the company, which rose about 53% in 2019, fell to $11 in extended trading.
Reporting by Ayanti Bera in Bengaluru; Editing by Shailesh Kuber