For the fiscal year 2018, the retailer expects earnings to be in the low-to-mid $2.00 range, much below Wall Street’s expectation of $2.76.
Bed Bath & Beyond, who recently got its new CFO, aims to grow comp sales and EPS by 2020 for which the management is focusing on various strategies. Recently, the home goods chain rolled out a new membership program, Beyond +. As per this program, customers can get 20% discount on items purchased if they availed the $30 a year membership. Along with pricing and merchandising, the company is also working on its digital vision.
Related: Bed Bath & Beyond tanks on disappointing outlook
Since the start of the year, the company’s stock fell about 10%. For Q1 2018, analysts expect the company to post revenue of $2.75 billion, up 0.4% from the prior year period. EPS is estimated at $0.32, much lower than $0.58 earned during the previous year period.
In April, the company was hit by the downgraded credit rating of “BBB-“ by the S&P. Out of the 15 analysts who cover this stock, 7 advise to hold it, while the other 8 recommend to sell.