(Reuters) - Home furnishing retailer Bed Bath & Beyond Inc (BBBY.O) on Wednesday reported a surprise fall in comparable store sales amid intense competition and cut its full-year forecasts, sending its shares down 15 percent in extended trading.
Bed Bath and fellow home goods sellers such as Pier 1 Imports Inc (PIR.N) have been struggling with competition from online retailers like Amazon Inc < AMZN.O> and big-box retailers like Home Depot (HD.N) and Walmart (WMT.N).
Bed Bath, the “Buy Buy Baby” brand owner, has been trying to turn around by revamping its stores and focusing more on its decorative furnishing business and digital platforms.
However, the results signaled the efforts are yet to pay off. The company’s same-store sales fell 0.6 percent in the second quarter ended Sept. 1, continuing their slide for the sixth straight quarter.
Analysts on average had expected a rise of 0.33 percent in comparable sales, according to Thomson Reuters I/B/E/S.
The company cut its full-year profit forecast to the low end of its previous range.
The retailer also said it now expects comparable store sales growth to be flat, compared with its previous forecast of growth in the low-single-digit percentage range.
The company’s net income plunged to $48.6 million, or 36 cents per share, from $94.2 million, or 67 cents per share, a year earlier.
Analysts on average had expected a profit of 50 cents per share.
The New Jersey-based company’s net sales of $2.94 billion also missed Wall Street estimate of $2.96 billion.
Reporting by Soundarya J in Bengaluru; Editing by Maju Samuel