Bed Bath & Beyond (NASDAQ: BBBY) reported Q2 EPS of $0.04, $0.48 worse than the analyst estimate of $0.52. Revenue for the quarter came in at $1.99 billion versus the consensus estimate of $2.06 billion.

GUIDANCE:

Bed Bath & Beyond sees Q3 2021 EPS of $0.00-$0.05, versus the consensus of $0.28. Bed Bath & Beyond sees Q3 2021 revenue of $1.96-2 billion, versus the consensus of $2.02 billion.

Bed Bath & Beyond sees FY2021 EPS of $0.70-$1.10, versus the consensus of $1.51. Bed Bath & Beyond sees FY2021 revenue of $8.1-8.3 billion, versus the consensus of $8.31 billion.

Mark Tritton, Bed Bath & Beyond's President and CEO said, "While our results this quarter were below expectations, we remain confident in our multi-year transformation. Following solid growth in June, we saw unexpected, external disruptive forces towards the end of the quarter that impacted our outcome. In August, the final and largest month of our second fiscal period, traffic slowed significantly and, therefore, sales did not materialize as we had anticipated. As COVID-19 fears re-emerged amid the on-going Delta variant, we experienced a challenging environment. This was particularly evident in large, key states such as Florida, Texas and California, which represent a substantial portion of our sales. Furthermore, unprecedented supply chain challenges have been impacting the industry pervasively, and we saw steeper cost inflation escalating by month, especially later in the quarter, beyond the significant increases that we had already anticipated. This outpaced our plans to offset these headwinds. These factors impacted sales and gross margin."

Tritton added, "Encouragingly, we've continued to make progress against the fundamentals of our three-year transformation strategy. Our buybuy BABY banner continued to build on its positive momentum from the past several quarters, growing double digits due to strength in apparel and travel gear and increasing market share for the period. We also celebrated the July re-opening of our Bed Bath & Beyond banner's NYC flagship store in Chelsea as part of our comprehensive store remodel program, which is exceeding our expectations. Our higher margin Owned Brands are outperforming our penetration goals across the overall chain, and even stronger in remodeled stores. As a group, we continued to leverage our enhanced digital channel, with significant growth above 2019 at nearly double the proportion of sales. Operationally, we entered the next phase of our supply chain modernization through our partnership with Ryder which is instrumental to our strategy. We are committed to executing over the short, mid and long term, especially during these early stages of our multi-year plan."

"Our financial foundation is strong. We generated positive operating cash flow during the quarter. Our cash balance, coupled with our recently amended asset-based revolving credit facility, provides us on-going capital and liquidity strength of $2.0 billion. We are well positioned to continue our planned investments in our business and pave the way towards a more profitable future. We have the plan, the team and the resources to unlock our potential."

For earnings history and earnings-related data on Bed Bath & Beyond (BBBY) click here.