After the market close on Thursday, The Container Store reported a third-quarter loss of 4 cents a share, when analysts had been calling for a profit of 5 cents a share. The storage retailer simultaneously lowered its full-year guidance to between 10 cents and 13 cents a share, down from its previous 30-to-38-cent range.
Meanwhile, Bed Bath & Beyond reported its first quarterly comparable sales decline since 2009, and posted its 16th-straight quarter of gross margin contraction, according to Citi.
So what went wrong?
"For Bed Bath & Beyond, you are facing a lot more competition from online-only competitors, the most notable obviously being Amazon," said Anthony Chukumba, senior research analyst at BB&T Capital Markets. "For The Container Store ... I'm not convinced that a great housing market ever helped."
Bed Bath & Beyond is facing competition from Amazon in more ways than one, Chukumba said. Not only does it sell home furnishings on its namesake website, but through its 2011 purchase of Quidsi, it also owns Casa.com. Further exacerbating the problem is that for years, Bed Bath & Beyond underinvested in its own digital presence.
"Quite frankly, Casa.com is what Bedbathandbeyond.com should be but isn't," Chukumba said.