UNION, N.J.–Bed Bath & Beyond reported a comparable-store sales drop as earnings sank for the third quarter ended Nov. 29, hindered by a weak economy and the liquidation of Linens ’n Things, executives said.
Net earnings fell to $87.7 million from $138.2 million in the year-ago quarter, a drop of 37 percent.
Net sales slipped 0.7 percent to $1.78 billion. Comp-store sales decreased by about 5.6 percent, compared with an increase of approximately 0.8 percent in last year’s fiscal third quarter.
During a conference call, Steve Temares, chief executive officer, blamed Bed Bath’s comp-store sales decline on the economic slowdown, the housing crisis “and the liquidation of a number of retailers, including a major competitor,” he said, referring to Linens ’n Things.
Although the retail climate and economy has been unforgiving, long term, Bed Bath & Beyond expects “to gain market share and improve our competitive position” during this rough patch, Temares said.