The bad weather that hurt Bed Bath & Beyond during the fourth quarter may have abated, but the company’s sales still grew at a slower than expected pace during the first quarter and caused profits to come in toward the low end of expectations.
The company said sales for its first quarter ended May 31 increased 1.7% to $2.657 billion but same store sales grew 0.4%, well below the 1% to 2.5% estimate the company had provided back in April when it reported weak fourth quarter results that were negatively affected by severe weather. Net income during the quarter fell to $187.1 million from $202.5 million, while earnings per share of 93 cents were unchanged from the prior year as the company spent $273 million to buy back 4.2 million shares. The company had expected to reported earnings per share of 92 cents to 96 cents.
Looking ahead, Bed Bath & Beyond said it expects second quarter earnings per share of $1.08 to $1.16 and noted it has $861 million remaining under its share repurchase program.