American retailer Bed Bath & Beyond Inc. cut its sales and profits forecast for 2021 on the back of a drop in shopper traffic in August and supply chain hurdles. Retailers have been facing port congestion and rising transportation costs given the recent surge in Covid cases, which is putting into question hopes of a swift recovery. Bed Bath cut its adjusted profit forecast to $0.70-1.10 per share, lower than its previous forecast of $1.40-1.55. It also cut its sales forecast to $8.1-8.3bn, a tad lower than its previous forecast of $8.2-8.4bn. CEO Mark Triton said that the company was facing “pervasive” supply chain challenges and cost inflation that has been on the rise and eating into its profitability.
Bed Bath’s 5.165% 2044s fell by a massive ~8 points to currently trade at 86 cents on the dollar.
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