The Sniff Test: Bed Bath & Beyond’s problems have little to do with Hurricane Harvey, analysts say

Bloomberg News
Bed Bath & Beyond says Hurricane Harvey had an impact on quarterly earnings, but analysts think the retailer has bigger problems

Bed Bath & Beyond Inc. has a number of problems but Hurricane Harvey isn’t one of them, according to GlobalData Retail.

Bed Bath & Beyond BBBY, +1.17% reported a wide earnings per share miss late Tuesday, saying its 67-cents-per share EPS included a number of “unfavorable impacts,” such as about 2 cents per share from Hurricane Harvey.

Shares closed Wednesday down nearly 16% after the earnings announcement.

“Although Bed Bath & Beyond has made passing reference to Hurricane Harvey as one of the reasons for this quarter’s weak results, we are not entirely convinced by this explanation,” wrote Neil Saunders, managing director of GlobalData Retail.

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