Bed Bath & Beyond 3Q results: Sales slide, bankruptcy looms
“Bed Bath & Beyond has completely lost control and is at an impasse,” said one analyst.
NEW YORK — Bed Bath & Beyond sales fell 33% in the fiscal third quarter as the homewares company works to strike the right balance with its shoppers.
Revenue fell to $1.26 billion for the three months ended November 26 from $1.88 billion a year earlier. Sales in stores that have been open for at least a year, a key indicator of a retailer’s health, fell 32%.
Analysts polled by Zacks Investment Research were expecting higher sales of $1.43 billion.
While the quarterly performance came as no surprise given Bed Bath & Beyond’s update on last week’s results, GlobalData chief executive Neil Saunders said in a statement it still came as a bit of a shock.
“A third of the revenue is gone, plunging an already ailing company into the depths of chaos,” he said.
President and CEO Sue Gove said in a prepared statement Tuesday that the company is working to adjust its merchandise and strategy, which has moved away from shoppers’ preferences.
“We want our customers to know that we are listening to them and moving forward every day to meet their needs,” she said.
The retailer lost $393 million, or $4.33 per share, for the quarter. This compares to a loss of $276.4 million, or $2.78 a year earlier.
Excluding certain items, adjusted loss was $3.65 per share. Wall Street claimed a loss of $2.36 a share.
Last week, Bed Bath & Beyond warned it may have to file for bankruptcy protection as it struggles to attract buyers. It said it was considering several options, including selling assets or restructuring its business before a bankruptcy court. But the chain acknowledged that even those efforts may not be successful.
Bed Bath & Beyond announced in August it would be closing stores and laying off employees to get the business back on track. It closed about 150 of its namesake stores and reduced its workforce by 20%.
Saunders isn’t optimistic about the retailer’s future.
“In our view, Bed Bath & Beyond has completely lost control and is in turmoil; and with the bottom fast approaching, survival is now unlikely,” he said.
Shares of the Union, NJ-based company are up more than 6% pre-market.
https://www.kvue.com/article/news/nation-world/bed-bath-beyond-3q-results/507-17bcc95a-7edf-4f6e-b014-66632a5fdc24 Bed Bath & Beyond 3Q results: Sales slide, bankruptcy looms