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June 26 (Bloomberg) -- Bed Bath & Beyond Inc., the operator of about 1,500 home-goods and baby-product stores, fell the most in six months after forecasting second-quarter profit that was less than analysts’ estimated amid competition from online retailers.
The shares slid as much as 9.5 percent to $55.33 in New York, the biggest intraday decline since Jan. 9. The Union, New Jersey-based company already had retreated 24 percent this year through yesterday, compared with a 6 percent gain for the Standard & Poor’s 500 Index.
Profit per share in the quarter through August will be $1.08 to $1.16, the company said in a statement. Analysts’ estimated $1.20, on average. The company repeated its projection that profit for the full fiscal year would increase at a mid- single-digit percentage rate.
Bed Bath & Beyond, which also owns the Buybuy Baby and World Market chains, has been investing in its online and mobile operations to combat increased competition from e-commerce merchants such as Amazon.com Inc. U.S. retailers in general have suffered from diminished traffic at shopping centers and consumers’ penchant for seeking bargains.
Net income in the quarter ended May 31 fell 7.6 percent to $187.1 million, or 93 cents a share, Bed Bath & Beyond said yesterday. Analysts estimated 95 cents.