Bed Bath & Beyond quarterly profit falls
ATLANTA (Reuters) - Home furnishings retailer Bed Bath & Beyond (BBBY.O) posted lower quarterly earnings as sales were hurt by the soft U.S. economy and a major rival's liquidation, and forecast earnings for the current period below Wall Street estimates.
The retailer said it expected to open fewer stores in 2009 than last year.
"We believe the current retailing environment, though difficult, provides an excellent opportunity for us to strengthen our long-term prospects," Chief Executive Steven Temares said during a conference call.
Earnings fell to $87.7 million, or 34 cents a share, for the third quarter ended November 29, compared with $138.2 million, or 52 cents a share, a year earlier.
Analysts, on average, had expected earnings of 33 cents a share, according to Reuters Estimates.
Total sales fell 0.7 percent to $1.78 billion. Same-store sales, a key measure of retail performance, fell about 5.6 percent.
Linens 'n Things, a key competitor, sharply discounted its goods in recent months as it liquidated its stores after filing for bankruptcy last year.
Additionally, home-goods chains Pier 1 Imports (PIR.N) and Williams-Sonoma (WSM.N) have marked down prices as a U.S. housing slump and recession erodes demand for furnishings.
Bed Bath & Beyond forecast profit of 40 cents to 46 cents a share for the fourth quarter that ends in late February and $1.50 to $1.56 a share for the full year. Analysts expected 51 cents a share for the fourth quarter and $1.59 a share for the year.
The retailer had cut its third quarter forecast in December, citing liquidation sales of a major rival and the weaker economy.
(Reporting by Karen Jacobs; Editing by Tim Dobbyn, Richard Chang)
