(Reuters) - Home furnishings retailer Bed Bath & Beyond BBBY.O slashed its third-quarter profit forecast, the latest retailer to do so in a sluggish U.S. retail market.
The company’s shares fell 6.3 percent in late evening trading on Tuesday.
Bed Bath & Beyond now expects third quarter earnings of about $1.07 to $1.10 per share, down from its prior expectation of $1.14 to $1.21 per share.
The company also said it expects sales in the quarter to grow by 0.3 percent to about $3.0 billion. It had earlier expected sales to increase by about 1.8 to 4.0 percent.
The company, like Macy’s Inc M.N and Nordstrom Inc JWN.N, is facing intense competition from online retailers such as Amazon.com Inc AMZN.O.
“...We experienced softer in-store transaction counts, and on the other hand sales from our customer-facing digital channels demonstrated strong growth, in excess of 25 percent”, Bed Bath & Beyond Chief Executive, Steven Temares said.
Amazon.com has revolutionized shopping habits, conditioning shoppers to expect deeper discounts than brick-and-mortar stores can afford. Analysts call this the “Amazon effect.”
Analysts on an average expected the company to earn $1.17 per share on revenue of $3.02 billion, according to Thomson Reuters I/B/E/S.
Reporting by Abinaya Vijayaraghavan in Bengaluru; Editing by Sandra Maler