Photograph by Bloomberg via Getty Images
By Reuters
December 23, 2015

Home furnishings retailer Bath & Beyond 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% 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%.

The company, like Macy’s (m) and Nordstrom (jwn) , is facing intense competition from online retailers such as (amzn) .

“…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. 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.


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