Tags: Bed Bath andBeyond | share | buyback | slump

Bed Bath & Beyond Planning $2 Billion Buyback After Shares Slump

Monday, 07 Jul 2014 09:33 AM

Bed Bath & Beyond Inc., aiming to revive a slumping stock after delivering a disappointing forecast last month, plans to buy back $2 billion in shares.

The new repurchases will follow its existing program, which had about $861 million remaining as of May 31, Bed Bath & Beyond said today in a statement. The latest buyback will be completed in fiscal 2016, which begins around the end of February.

The move shows the board’s confidence in the company’s “long-term growth potential, financial outlook and cash flow generation,” Chief Executive Officer Steven Temares said in the statement. Over the past decade, Bed Bath & Beyond has returned about $6.6 billion to its shareholders through stock buybacks.

Shares of the company, which operates about 1,500 home-goods and baby-product stores, rose as much as 2.5 percent to $60.86 in early trading. The stock had fallen 26 percent this year through July 3, the most recent trading day.

On June 26, the shares fell the most in six months, dragged down by a second-quarter profit forecast that missed analysts’ estimates. The company expects profit of $1.08 to $1.16 a share in the period, which ends in August. Analysts had estimated $1.20 on average.

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Bed Bath & Beyond Inc., aiming to revive a slumping stock after delivering a disappointing forecast last month, plans to buy back $2 billion in shares.
Bed Bath andBeyond, share, buyback, slump
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2014-33-07
Monday, 07 Jul 2014 09:33 AM
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