Bed Bath & Beyond (BBBY) Third Quarter 2023 Results

A man is seen inside a Bed Bath & Beyond store in New York City on January 5, 2023.

Ziyu Julian Zhu | Xinhua News Agency | Getty Images

Bed bath and beyond Tuesday posted bigger-than-expected quarterly losses as its chief executive acknowledged that the struggling retailer’s turnaround plan had fallen short of its targets.

Days after the company warned of potential bankruptcy, it reported negative operating cash flow of $307.6 million for the third quarter and soaring net losses.

Bed Bath lost $393 million in the period, it said on Tuesday, worse even than the $385.8 million quarterly loss it had projected last week and 42% greater than the loss announced in the prior year quarter.

The quarterly losses include an impairment charge of about $100 million, which the company said related to “certain store-level assets.”

CEO Sue Gove said on Tuesday the company was working to resolve its cascading financial issues “in a timely manner.” She echoed the company’s press release in remarks during a roughly 10-minute earnings call and declined to answer questions from analysts.

Here’s how the retailer fared in the three-month period ending Nov. 26 compared to what analysts expected, based on data from Refinitiv:

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

The company’s net loss rose to $393 million, or $4.33 per share, from a loss of $276 million, or $2.78 per share a year ago.

Comparable sales fell 32%. Same-name banner Bed Bath & Beyond’s comparable sales fell 34% and Buybuy Baby’s comparable sales declines were in the range of 20%.

The company last week previewed its net sales for the third fiscal quarter and said they were expected to be around $1.26 billion, down from $1.88 billion a year ago. .

This advance announcement from the home goods retailer, which is battling to stay in business, came with a “going concern” warning. In the filing, he said he might run out of money to cover his expenses and might have to file for bankruptcy. He said he was struggling to attract customers to stores and reverse declining sales.

Additionally, the company said, it has become more difficult to keep shelves stocked as suppliers adjust payment terms or stop sending goods due to Bed Bath’s financial problems. The company’s market value fell to a meager $142.8 million. Still, its shares rose about 12% in premarket trading on Tuesday.

“While we acted quickly and effectively to modify assortment and other merchandising and marketing strategies, inventory was limited and we did not meet our targets,” Gove said in Tuesday’s statement.

Still, she said, the retailer has aggressively cut costs and is on track to close the 150 stores it previously announced. Its operating expenses fell to $583.6 million from $698 million last year.

“Our organization is more streamlined and we have adopted a more focused infrastructure that reflects our current business,” Gove said.

The retailer comprises three banners: its namesake, its baby supply chain, Buybuy Baby; and its health and beauty banner, Harmon.

This story is developing. Please check for updates.

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