THE SPARK: Bed Bath & Beyond said Wednesday that its profit and revenue rose in its September-November quarter. But its revenue of $2.34 billion was just shy of the $2.36 billion that analysts expected, according to a survey by FactSet.

Its prediction for the current quarter, which ends in February, was for earnings of $1.28 to $1.33 per share. Analysts had been expecting $1.30 per share.

THE BIG PICTURE: A tepid housing market has discouraged many people from selling their homes and moving, which cuts down on demand for the kind of furnishings sold by Bed Bath & Beyond.

Retailers are also paying more for goods, putting pressure on profit margins.

But Bed Bath & Beyond has held down administrative and operating costs and avoided deep markdowns, protecting margins, said Jefferies analyst John Marrin.

THE ANALYSIS: "For the first time in over five years, sales growth was in line with industry growth," Marrin said. But the weak housing market remains a risk, and if consumers may cut back on spending if the economy doesn't improve.

Other analysts were largely upbeat, saying the pullback in the stock was a good time to buy shares.

SHARE ACTION: Shares of Bed Bath & Beyond fell $3.97, or 6.5 percent, to $57.46 in afternoon trading. The stock remains above the lows it hit late this summer, when the broader stock market plunged. Bed Bath & Beyond shares have traded between $44.79 and $63.83 over the last year.