The shares of Bed Bath & Beyond Inc. (BBBY) tanked in the after-hours session on Tuesday as the company gave a bleak outlook in its preliminary report for the fourth quarter of the 2019 financial year.

Photo Credit: Public domain photo via Wikimedia.

What Happened

Bed Bath & Beyond said that the same-store sales declined 5.4% in December 2019 and January 2020, the first two months of its fiscal fourth quarter of the year.

The company attributed the low sales to "store traffic declines" and "inventory management issues."

"We are experiencing short-term pain in our efforts to stabilize the business, including the pressures of store traffic trends coupled with our own executional challenges," the Bed Bath & Beyond CEO Mark Tritton, who moved over from Target Corporation (TGT) 0.03% last year, said in a statement.

"However, we did achieve a notable positive shift in sales in our digital channels during this period, with growth of approximately 20%. I believe we can solidify this growth, while also addressing the broader stabilization of our business."

The home goods retailer sold about half of its real-estate to a private equity firm earlier in January as it sought cash to pay off debts and buy back shares.

Price Action

Bed Bath & Beyond's shares dropped 25.56% in the after-hours session on Tuesday at $11.07. The shares closed the regular session 3.92% higher at $14.85.