Bed Bath & Beyond Inc. (NASDAQ: BBBY) announced its financial results for the third quarter of fiscal 2017, with both earnings and revenue beating estimates. However, as the company’s earnings decreased year by year, which was due to the higher advertising costs and lower margins, shares of the company dropped 5.4% after the announcement.

For the third quarter, net sales were $2,954.5 million, which was relatively flat compared with the same period last year, beating estimates of $2,900 million.

Net earnings for the third quarter decreased 48.2% from $126.4 million, or $0.85 per diluted share, for the same period last year, to $61.3 million, or $0.44 per diluted share. However, the results beat analysts’ estimates of $0.36 per share.

“How [customers] discover product, their expectations and knowledge around pricing and services offered, and how they share their thoughts about their shopping experiences are all changing rapidly,” Steven Temares, the CEO of the company, said on Wednesday.

“We have made considerable progress in our ability to align the organizational resources to accelerate our strategic priorities. Each of the initiatives we are working on has its own framework and structure built around cross-functional coordination to expedite results, to further our mission and to drive greater efficiency to achieve operational excellence,” he continued.