Bed Bath & Beyond reports earnings drop

UNION, N.J. Bed Bath & Beyond reported net earnings of 34 cents per diluted share ($87.7 million) in the fiscal third quarter ended November 29, 2008, compared with net earnings of 52 cents per diluted share ($138.2 million) in the same quarter a year ago.

Net sales for the fiscal third quarter of 2008 were approximately $1.783 billion, a decrease of approximately 0.7% from net sales of approximately $1.795 billion reported in the fiscal third quarter of 2007. Comparable-store sales in the fiscal third quarter of 2008 decreased by approximately 5.6%, compared with an increase of approximately 0.8% in last year's fiscal third quarter.

Based on the current and prospective macroeconomic and retail environments, the company now estimates it will earn approximately 40 cents to 46 cents per diluted share for the fiscal fourth quarter of 2008, ending February 28, 2009. This is based, in part, upon a modeled mid-single digit percentage decrease in its comparable store sales percentage. This brings the company's full year net earnings estimate to be approximately $1.50 to $1.56 per diluted share.