Bed Bath & Beyond Posts 36 Percent Drop In Q4 Earnings

January 7, 2009 9:51 p.m. EST

Union, NJ (AHN) - Bed Bath & Beyond announced Wednesday that fiscal third quarter earnings dipped 36 percent on falling revenue and same-store sales.

The home décor company posted third quarter earnings of $87.7 million or 34 cents a share, down from $138.2 million or 52 cents a share.

Revenue fell to $1.78 billion, down 0.7 percent from $1.79 billion last year. Same-store sales saw a steeper decline, down 5.6 percent from a year ago.

The results were relatively in line with analyst estimates for earnings of 33 cents a share on $1.79 billion in revenue.

Bed Bath & Beyond said it expects to earn 40 cents to 46 cents a share in the fourth quarter. Analysts are looking for earnings of 49 cents a share, according to Thomson Reuters.

Based on the fourth quarter guidance, the company expects full year earnings to be $1.50 to $1.56 a share, short of analyst estimates of $1.58.

Using the new guidance, full year results would be down at least 25 percent compared to a year ago.

Bed Bath & Beyond operates more than 1,000 stores under its namesake, Christmas Tree Shops, Harmon, Harmon Face Values and buybuy BABY names.