BBBY stock falls on 3Q woes

UNION, N.J. Bed Bath and Beyond's shares fell today, closing at $27.40 after opening at $28, as the company reported less than stellar results for its third quarter ended Dec. 1, 2007.

The company reported operating profit of $203 million compared with $211 million last year. Net earnings were 52 cents per diluted share ($138.2 million) compared with net earnings of 50 cents per diluted share ($142.4 million). The net earnings, however, included a net $8 million benefit due to the favorable resolution of discrete tax items required to be recorded in the quarter.

Net sales for the fiscal third quarter of 2007 were approximately $1.8 billion, an increase of approximately 10.8% from net sales of approximately $1.6 billion reported in the fiscal third quarter of 2006. Comparable-store sales in the fiscal third quarter of 2007 rose by approximately 0.8%, compared with an increase of approximately 4.6% in last year's fiscal third quarter.

Bed Bath and Beyond said it expects fourth quarter earnings to be in the range of 64 cents to 67 cents per diluted share based, in part, upon a projected flat comparable store sales percentage for the quarter. This would bring the company's full year earnings estimate to a range from approximately $2.08 to $2.11 per diluted share.