Shares of BBBY are getting crushed.
For the fiscal 2017 first quarter, the Company reported net earnings of $.53 per diluted share ($75.3 million), including an unfavorable impact of approximately $.05 from the adoption of the new share-based payment accounting standard, compared with $.80 per diluted share ($122.6 million) for the fiscal 2016 first quarter. Net sales for the fiscal 2017 first quarter were approximately $2.7 billion, an increase of approximately 0.1% from the prior year quarter. Comparable sales in the fiscal 2017 first quarter decreased by approximately 2.0%, compared with a decrease of approximately 0.5% in last year’s fiscal first quarter. Comparable sales from customer-facing digital channels continued to have strong growth in excess of 20%, while comparable sales from stores declined in the mid-single-digit percentage range during the fiscal 2017 first quarter.
The Company’s Board of Directors has declared a quarterly dividend of $.15 per share, to be paid on October 17, 2017 to shareholders of record at the close of business on September 15, 2017.
During the fiscal 2017 first quarter, the Company repurchased approximately $127 million of its common stock, representing approximately 3.3 million shares, under its existing $2.5 billion share repurchase program. As of May 27, 2017, the program had a remaining balance of approximately $1.6 billion.
At this time, Bed Bath & Beyond Inc. (BBBY) is not updating its full year modeling assumptions provided during its April 5, 2017 conference call with analysts and investors.
Although the first quarter is typically the least impactful quarter in terms of annual sales and earnings, and while the Company continued to have strong growth in its customer-facing-digital channels this quarter, the Company did experience increased softness in transactions in stores, as well as higher net-direct-to-customer shipping expense, coupon expense, and advertising costs during the quarter. It remains to be seen whether these challenges were more pronounced in, or unique to, the first quarter due to the smaller sales base in this period, and/or a later start to the summer selling period.
After the second quarter, the Company believes it will have better visibility to the full-year and, if necessary, will update its full-year modeling assumptions at that time.