Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of housewares retailer Bed Bath & Beyond (NASDAQ:BBBY) sank 10% on Thursday after its quarterly results and outlook disappointed Wall Street.

So what: Bed Bath & Beyond shares have pulled back sharply in 2014 on slowing profit growth, and today's Q1 results -- earnings fell 7.6% on a revenue increase of just 1.7% -- coupled with downbeat guidance only reinforce that trend. In fact, Bed Bath & Beyond's operating expenses increased 2.9% while same-store sales inched up just 0.4%, suggesting that its competitive position continues to weaken as well. 

Now what: Management now sees Q2 EPS of $1.08 to $1.16, well below the average analyst estimate of $1.20. "We believe that throughout the United States and Canada, there is an opportunity to operate in excess of 1,300 Bed Bath & Beyond stores as well as grow our Cost Plus World Market, Christmas Tree Shops andThat!, and buybuy BABY concepts from coast to coast," Co-Chairman Warren Eisenberg reassured analysts in the conference call. "At the same time, we continue to make substantial capital investments in our online, mobile, and social media channels to enhance our customer's overall experience." More important, with Bed Bath & Beyond shares sinking to a new 52-week low today and trading at a forward P/E of 10, the downside might be limited enough to buy into those prospects. 

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Editor's note: A previous version of this article stated that EPS fell 7.6%, rather than earnings. The Fool regrets the error.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Bed Bath & Beyond. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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