Shares of Bed Bath & Beyond have lost a fifth of its value in trading Thursday, as the company's performance continues to deteriorate.
Bed Bath & Beyond, like many of its competitors, has struggled to protect its margins amid costly investments in e-commerce. Meantime, it has struggled to distinguish itself from the many retailers that offer similar goods such as Target, Walmart and HomeGoods, as well as upkeep its in-store experience.
Thursday marked the retailer's worst day ever trading, after having already seen its shares drop nearly 34 percent year-to-date.
Late Wednesday, the company reported earnings that fell short of estimates. The home goods retailer said second-quarter earnings fell to $48.6 million, or 36 cents a share, from $94.2 million, or 67 cents a share, a year ago. Analysts surveyed by Thomson Reuters had expected Bath Bath & Beyond to earn 50 cents a share.
Sales were flat at $2.94 billion, less than expected $2.96 billion.
For the sixth straight quarter, same-store sales declined, dropping 0.6 percent, rather than growing 0.3 percent, as expected.
"These poor numbers...need to be set against the context of a robust consumer economy where spending on homewares and home-related products has been strong. Framed in this way, the numbers are little short of terrible and underscore the myriad of missteps Bed Bath & Beyond is making," said Neil Saunders, Managing Director of GlobalData Retail, in a research note.
On Wednesday, the company said that it remains on track to achieve "moderating declines" in operating profit and net earnings per share in fiscal 2018 and 2019 and earnings per share growth by 2020.
However, judging by Thursday's selloff, investors are skeptical.
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