Bed Bath & Beyond Inc. (BBBY) shares are sliding in after-hours trading Tuesday, even though the company just posted its second straight quarter of year-over-year revenue growth. That might sound counterintuitive, but the details explain the market's mood.

The omni-channel retailer reported second-quarter revenue of $361.16 million, up 28% from a year ago. That's solid growth, but it fell just short of the Street consensus of $362.38 million, according to market data. The company also posted a loss of 53 cents per share, missing the expected loss of 26 cents per share. That's a big miss, and investors tend to focus on the bottom line.

Still, there are encouraging signs under the hood. Active customers jumped 47% year-over-year to 6.4 million, and orders delivered surged 117% to 2.8 million. The company says this growth came from its base business and acquired brands. It also marked the second consecutive quarter of revenue growth, following 19 straight quarters of declines. That's a notable turnaround, even if the market wanted more.

Bed Bath & Beyond ended the quarter with $126 million in cash and cash equivalents.

What's Next for Bed Bath & Beyond

The company is in the middle of a major transformation. It's rebranding as Neighborhood Intelligence and plans to move its listing to the Nasdaq under the ticker NXH. It's also relocating its corporate headquarters to Nashville, Tennessee.

CEO Marcus Lemonis is optimistic. "Our second quarter results show that the transformation of this business is taking hold," he said. He noted better customer engagement and more frequent orders per person.

The company closed its acquisition of The Brand House Collective during the quarter, and deals for The Container Store, Elfa, and Closet Works closed in July. Agreements to acquire Fathom Holdings and F9Brands are also in place.

"We are acquiring capabilities and active customers while eliminating infrastructure we no longer need," Lemonis said. He believes the company can cut $50 million in annualized costs over the next 12 months as these acquisitions are integrated. "We would not call it cost cutting; we would call it finishing the merger."

Stock Price Action

Despite the growth narrative, shares are down 7.2% to $5.16 in after-hours trading Tuesday. The stock's 52-week range is $4.26 to $12.65, so it's still well off its highs but above its lows.

The market's reaction suggests investors are focused on the earnings miss and the revenue shortfall, even as the company's turnaround story gains traction. Whether the long-term vision wins out remains to be seen.