Bed Bath & Beyond (BBBY) Q3 2023 Quarterly Earnings

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A man is seen at the Bed Bath & Beyond store in New York, on January 5, 2023.

Ziyu Julian Zhu | Xinhua News Agency | Getty Images

Bed Bath & Beyond on Tuesday posted a wider-than-expected quarterly loss as its chief executive admitted the struggling retailer’s turnaround plan had not met its goals.

Days after the company warned of possible bankruptcy, it painted an even worse picture of its finances. Bed Bath lost $393 million in the fiscal third quarter, it said Tuesday, worse than the $385.8 million quarterly loss it forecast just last week and a 42% increase from a year ago loss.

Bed Bath’s net loss has now exceeded $1.12 billion for the first nine months of the fiscal year.

CEO Sue Gove said the company has already cut costs and will cut an additional $80 million to $100 million, including an unspecified number of layoffs, and plans to close 150 stores. which they previously announced to close. Bed Bath’s operating expenses have fallen to $583.6 million, compared to $698 million last year.

Here’s how the retailer did in the three months ended Nov. 26 compared to analysts’ expectations, based on Refinitiv data:

  • Loss per share: $3.65 adjusted vs. $2.23 expected
  • Revenue: $1.26 billion vs $1.34 billion expected

As the home goods retailer fights to stay in business, its heavy losses have slowed down their turnaround strategy. He wants to bring back more national brands and popular products, as he gets rid of some of his private labels. But suppliers, frustrated by Bed Bath’s finances, have changed payment terms or discontinued products – leaving store shelves emptier than usual.

Gove said on Tuesday that the company is working to address its emerging financial difficulties in a “timely manner.”

“Although we moved quickly and effectively to change the range and other merchandising and marketing strategies, inventory was constrained and we did not achieve our goals,” Gove said in a press release on Tuesday.

She cited the company’s press release in comments on a roughly 10-minute earnings call and declined to take analytical questions.

Bed Bath did not share sales trends for the holiday season, which falls in the company’s fourth fiscal quarter. Gove said Bed Bath used money it made in December to acquire more inventory.

The retailer has three banners: its name; his baby supply chain, Buybuy Baby; and the banner of his health and beauty, Harmon.

Comparable sales across the Bed Bath & Beyond business fell 32%. Comparable sales of the flagship fell 34%. Buybuy Baby’s comparable sales declined in the low 20% range. It did not specify comparable sales trends for its health and beauty chain, Harmon.

Net sales of $1.26 billion represent a decline of approximately 33% from $1.88 billion in the prior year.

Last week, the company previewed its net sales and net losses for the third fiscal quarter in a “going concern” warning. In the filing, they said it is at risk of running out of money to cover costs, as it struggles to attract customers to stores and reverse declining sales.

The company’s market value has fallen to $182 million. However, its shares gained more than 27% on Tuesday.

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