Bed Bath & Beyond falls after lower than expected income

Bed Bath & Beyond falls after lower than expected incomeBed Bath & Beyond Inc has said that it ha recorded a lower than expected quarterly net income indicating that the retailer recorded a slow sale season.

The shares of the company fell the most in a period of 18 months after the retailer forecast lower profit for the fourth quarter than expected by market analysts.  Its net income was recorded at $237.2 million, or $1.12 a share during the third quarter till 30 November, 2013, Bed Bath & Beyond said in a statement.

Analysts were expecting $1.16 a share, according to data compiled by Bloomberg.  Company expects earnings to be between $1.60 and $1.67 a share, which is lower than $1.79 analysts estimated.  The company said that like-to-like sales in the quarter increased 1.3 percent compared to analyst expectation of 2.7 percent, according to the average of 13 estimates compiled by Bloomberg.

The company's shares fell 12 percent to $69.75 at the close in New York, recording its largest fall since June 2012.  Shares of the company that is based in Union, New Jersey-based company rose 44 percent in the previous year.

Meanwhile, American Eagle Outfitters also cut their expectations for profits for the fourth quarter.