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A man is seen at a Bed Bath & Beyond store in New York, on Jan. 5, 2023.
Ziyu Julian Zhu | Xinhua News Agency | Getty Images
Bed Bath & Beyond on Tuesday posted wider quarterly losses than expected as its chief executive acknowledged that the struggling retailer’s turnaround plan had not achieved its goals.
Days after the company warned of potential bankruptcy, CEO Sue Gove said the company was working to address its cascading financial problems in a “timely manner.”
Here’s how the retailer did in the three-month period that ended Nov. 26 compared with what analysts were anticipating, based on Refinitiv data:
- Loss per share: $3.65 adjusted vs. $2.23 expected
- Revenue: $1.26 billion vs. $1.34 billion expected
The company’s net loss grew to $393 million, or $4.33 per share, from a loss of $276 million, or $2.78 per share a year ago.
Comparable sales dropped by 32%. Namesake banner Bed Bath & Beyond’s comparable sales dropped by 34% and Buybuy Baby’s comparable sales declines were in the low-20% range.
The home goods retailer, which is fighting to stay in business, issued a “going concern” warning last week. In the filing, it said it is at risk of running out of money to cover expenses and may have to file for bankruptcy. It said that it is struggling to attract customers to stores and turn around declining sales.
Plus, the company said, it has gotten harder to keep shelves stocked as suppliers adjust payment terms or stop sending goods because of Bed Bath’s financial troubles. The company’s market value has fallen to a meager $142.8 million.
“Although we moved quickly and effectively to change the assortment and other merchandising and marketing strategies, inventory was constrained and we did not achieve our goals,” Gove said in Tuesday’s release.
Last week, the company previewed its net sales and net loss in the fiscal third-quarter earnings. It said net sales in the fiscal third quarter, which ended Nov. 26, were expected to be about $1.26 billion — a decline from $1.88 billion in the year-ago period, the company said.
It anticipated a net loss of about $385.8 million for the third quarter, a nearly 40% jump year over year. The quarterly losses include an approximately $100 million impairment charge, which was not specified at the time. On Tuesday, the company said the charge was related to “certain store-level assets.” Gove said the company was on track in its previously announced plan to shutter 150 stores.
The retailer includes three banners: its namesake, its baby supplies chain, Buybuy Baby; and its health and beauty banner, Harmon.
This story is developing. Please check back for updates.
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Image and article originally from www.cnbc.com. Read the original article here.