Bed Bath & Beyond Stock Gains After Q3 Results

Bed Bath & Beyond Inc BBBY reported a third-quarter FY21 sales decline of 28.3% year-on-year, to $1.88 billion, missing the analyst consensus of $2 billion.
Adjusted core sales fell 14%, and the adjusted comparable sales declined 7% Y/Y.
Adjusted gross margin expanded 50 basis points to 35.9%. Adjusted EBITDA fell 66% Y/Y to $41 million, with the adjusted EBITDA margin contracting 240 basis points to 2.2%.
Adjusted EPS loss was $(0.25) versus $0.08 a year earlier.
Net cash used in operating activities during the quarter was $310.8 million. It ended the quarter with cash and equivalents of $540.44 million.
"In response to a sharp increase in inflation and pervasive freight and supply chain headwinds, we swiftly implemented market-driven pricing, promo optimization and product mix plans. Our decisive actions led to an adjusted gross margin rate significantly exceeding plan and above 2020 and 2019 - a key financial barometer of our three-year transformation strategy," said CEO Mark Tritton.
Guidance: Bed Bath & Beyond has cut FY21 sales guidance to $7.9 billion (prior view $8.1 billion - $8.3 billion), versus the consensus of $8.2 billion.
The company sees adjusted EPS of ($0.15) - $0.00 (prior view $0.70 - $1.10) against the estimate of $0.78.
Bed Bath sees Q4 sales of $2.1 billion against the consensus of $2.27 billion. Adjusted EPS of $0.00 - $0.15.
Price action: BBBY shares are trading higher by 6.88% at $14.29 on the last check Thursday.