Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares fell sharply on Thursday following the release of the company’s fiscal third-quarter results.
The company revealed that it earned 85 cents a share over the course of the three-month period that took place mostly in the fall. The figure was significantly lower than the $1.09 per share it raked in a year ago, while also failing to meet Wall Street expectations of 98 cents per share.
One of the bright spots that Bed Bath & Beyond experienced in its third quarter was a rise in its e-commerce business as online sales surged. However, brick-and-mortar sales were much lower than expected, as well as weaker than previous quarters, causing revenue to slump.
Overall, net sales came in at $2.96 billion, which was lower than the average revenue of $3 billion that analysts polled by FactSet expected. The company’s comparable sales fell by 1.4%, marking a 1% decline compared to the 0.4% it dropped in its previous year, while analysts were calling for a 0.5% surge.
Comparable sales from digital channels were up more than 20%, but a hike in expenses — about 7.2% higher year-over-year — helped to offset the company’s online success.
For its fiscal full-year 2016 report, Bed Bath & Beyond is projected to make somewhere in the range of $4.50 per share to $5 a share. The figure is in line with the $4.73 per share that analysts predicted in a previous report.
BBBY stock experienced an 8.6% decline Thursday afternoon.
