Bed Bath & Beyond reports a 28% drop in sales as it presses ahead with a turnaround plan

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  • Bed Bath & Beyond reported a 28% drop in quarterly sales and a wider-than-projected loss.
  • The results came from the three-month period before the struggling retailer unveiled an aggressive turnaround plan.
  • In late August, the company said it would change its merchandise strategy, close 150 stores, and lay off some employees, as it also secured a new loan ahead of the holiday season.

Bed Bath & Beyond on Thursday said sales plunged by 28% in the fiscal second quarter, as the home goods retailer struggled to draw customers. Here’s how the retailer did in the three-month period ended Aug. 27 compared with what analysts were anticipating, based on Refinitiv data:

  • Loss per share: $3.22 adjusted vs. $1.85 expected
  • Revenue: $1.44 billion vs. $1.47 billion expected

The company’s net loss widened significantly to $366 million, or $4.59 per share, from $73 million, or 72 cents per share, a year earlier. Its net sales dropped from $1.99 billion in the year-ago period.

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Interim CEO Sue Gove said in a news release Thursday that the company’s quarterly results do not reflect the progress it has made in recent weeks. For instance, she said the company is fixing inventory problems by speeding up markdowns of some merchandise. She said Bed Bath is “confident that our current liquidity will enable the necessary changes we are implementing.

Gove said the company’s loyalty program, Welcome Rewards, has grown by more than 1.3 million since the end of August, bringing it to a total of 6.4 million members since it launched this summer. She said it is lowering costs by about $250 million for the second half of the fiscal year, as it works to ramp up sales.

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source: www.cnbc.com/2022/09/29/bed-bath-beyond-bbby-q2-2022-earnings.html

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