Bed Bath & Beyond Inc.
) jumped on the bandwagon of troubled retailers that blamed the
chilly, harsh winter weather for dampening the January and
February sales results. The home furnishing retail chain lowered
its projections for the fourth quarter on Friday as it reported
preliminary comps growth of 1.7% for the quarter, below the
company's previous forecast of 2.0% to 4.0% growth.
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Bed Bath & Beyond revealed that its performance in fiscal
fourth quarter comprising the months of December, January and
February, was severely impacted by the turbulent weather that
forced 464 full-day closures and 1,923 partial day closures. The
company held the bad weather responsible for pulling down comps
by 2.0% - 2.5%, while it expects a 6 cents - 7 cents impact on
earnings per share.
The company expects to report fourth-quarter earnings per share
of $1.57 - $1.61 against $1.60 - $1.67 projected earlier. The
current Zacks Consensus Estimate for the fourth quarter stands at
$1.65 per share, which may see a downward revision in the next
Excluding the impact of the weather, the company remains positive
on its ability to have delivered its previously indicated sales
and earnings targets. Additionally, the company highlighted that
it continues to smoothly progress with its omnichannel
initiatives as well as its long-term strategic plans.
The company is scheduled to report its fourth quarter and fiscal
2013 financial results on Apr 9, 2014.
The polar vortex that hit most parts of the U.S. in January and
continued into February prevented shoppers from stepping out of
their homes and ultimately knocked down the business of
retailers. A major loser due to the inclement weather was
), which posted a 7% comps decline for the month of February.
However, some others including
Costco Wholesale Corp.
L Brands Inc.
) emerged winners gaining from the improved weather in late
February, which coincided with the government's tax refunds that
boosted the purchasing power of consumers. Comps for the above
mentioned companies rose 2% each for the 4 weeks ended Mar 1,