Bed Bath and Beyond shares are absolutely plummeting.
Bed Bath and Beyond was down more than 18% Thursday morning after giving disappointing full-year 2018 guidance.
The retailer earned an adjusted $1.48 a share, outpacing the $1.39 that analysts surveyed by Bloomberg were expecting. The results, however, were way below last year's fourth-quarter earnings of $1.84. Revenue of $3.72 billion topped the $3.68 billion that was anticipated.
Same-store sales for the fourth-quarter also beat, coming in at -0.6% versus a year ago, easily surpassing the 2.3% drop that was expected.
But the retailer's guidance disappointed. Bed Bath & Beyond guided full-year 2018 revenue in the "low-to-mid $2.00 range," missing the $2.77 that analysts were looking for.
And things may get worse for the company, according to a note from Credit Suisse analyst Seth Sigman. "We see EPS declining in 2018, again in 2019, and it's difficult at this stage to envision a return to sustained positive comps while also stabilizing profit," Sigman wrote.
Sigman said that although the company laid out a plan "differentiating its assortment, building out deeper sourcing capabilities, improving service and store experience," he isn't convinced of a turnaround.
He added that "there is little room for error, particularly as the pressures from competitive landscape intensify."
Bed Bath And Beyon is down more than 20% on the year.