Bed Bath & Beyond lowers 3Q guidance, warns on 4Q

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Home furnishings retailer Bed Bath & Beyond slashed its third-quarter profit forecast and warned that its comparable sales will come in at about 1 percent for the fiscal fourth quarter through Christmas.

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.

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The company, like Macy's and Nordstrom, is facing intense competition from online retailers such as

"Our performance in the third quarter reflects the recent trends we have been experiencing," said Steven Temares, CEO, in a statement.

"On the one hand 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%."

The company plans to report full third-quarter results on Jan. 7.

-Reuters contributed to this report

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