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Bath & Beyond's outlook sends stock plunging

NEW YORK — Bed Bath & Beyond’s shares tumbled a day after the home goods seller forecast weaker earnings than Wall Street expected as concern spread about the company’s health in view of the wobbling economy.

The chain gave the disappointing outlook even as it announced better-than-expected first-quarter results. It told investors it was being forced to use more coupons to get people to shop, and that was hurting its profitability.

Bed Bath & Beyond also faces growing competition from discounters and online, where it has made only a limited foray. Canaccord Genuity retail analyst Laura Champine said in April the retailer’s market share had fallen during the fourth quarter for the first time this decade. And she estimated the company was generating less than 2 percent of its sales online.

Meanwhile, Bed Bath & Beyond also is coping with expenses from recent acquisitions.

In May, it announced it is acquiring competitor Cost Plus. Cost Plus, based in Oakland, Calif., sells home furnishings, accessories, food and wine through World Market and Cost Plus World Market stores. Bed Bath & Beyond already runs more than 1,000 stores under its own name and the Christmas Tree Shops, buybuy Baby, Harmon and Home & More banners. This month, Bed Bath & Beyond said it is buying textile seller Linen Holdings.

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