Bed Bath & Beyond Judgment Day

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Bed Bath & Beyond shareholders will be watching Tuesday morning’s earnings report closely, following a series of financial setbacks for the company that could lead to bankruptcy. The national merchandise retailer is scheduled to release quarterly results Tuesday at 8:15 a.m. Eastern Time.

Last week, Bed Bath & Beyond delayed the release of fiscal third quarter financial results, saying it had determined the need for more time to complete its quarter-end closing procedures. These procedures included the evaluation of its results in conjunction with quarterly impairment tests of long-lived assets.

Bed Bath & Beyond was among the retailers that initially benefited from the COVID-19 outbreak as shutdowns and work-from-home guidelines forced Americans to shelter in place. As pandemic restrictions ease, sales have plummeted. In response, the company changed strategy, leading to a revolving door of executives amid growing store closures and rumors of impending bankruptcy.


Former Target executive Mark Tritton was ousted as CEO of Bed Bath & Beyond in June (Photo by Gary Gershoff/Getty Images | Istock/Getty Images)

In June, the company parted ways with former Target executive Mark Tritton after just three years as captain, following falling sales in consecutive quarters.

Tritton led the company’s transformation strategy, which included home improvement storesclosing underperforming stores and the introduction of a private label line called Owned Brands. However, efforts were not enough to turn around the company’s troubled business.

In the first quarter 2022, Bed Bath & Beyond’s net loss widened to $358 million, or $4.49 per share, from $51 million, or 48 cents per share, a year ago. Total comparable sales for the quarter fell 23% year over year.

Net loss widened again in the following quarter to $366 million, or $4.59 per share. Scale model sales plunged further, falling 28%.


In September, the company’s chief financial officer, Gustavo Arnal, killed himself and has since been named in a class action lawsuit alleging that he and majority shareholder, GameStop Chairman Ryan Cohen, artificially inflated the value of company in a “pump and dump” scheme.

Also in September, the company released a list of 56 stores which will close. At the time, the company was putting a turnaround plan in place, which has since fallen flat based on the latest update.

In October, Sue Gove officially assumed the role of CEO after serving several months in an interim capacity and being unanimously approved by the company’s board of directors.

The company attempted to swap debt to solve its liquidity problems.


BB&B cares more about business issues than the retail industry

Bed bath beyond

While declining sales and management changes have rocked Bed Bath & Beyond since the start of the pandemic, the successes of brick-and-mortar and online retailers suggest the problem is under the hood. (Michael M. Santiago/Getty Images/Getty Images)

In an interview with FOX Business on Monday, Michael Baker, senior research analyst at DA Davidson, said, “Bed Bath and Beyond suffered a long, slow loss of market share as others became more aggressive in the market. space over the last decade or more.”

“That includes online competitors like Amazon and Wayfair, as well as brick-and-mortar retailers like Target and Walmart,” he continued. “Retail growth trends appear to have slowed from the record pace set in 2021 and early 2022, but Bed Bath and Beyond’s issues are more about business-specific issues than retail as a whole.” together. »

“In 2022, eight of 14 retail stocks outperformed the market, with five of the companies rising despite the S&P 500 falling 19.4%,” he concluded.

Teleprinter Security Last Change Change %
ORLY O’REILLY AUTOMOTIVE INC. 828.71 -13.81 -1.64%
AZO AUTOZONE INC. 2,441.75 -44.89 -1.81%
ULTA ULTA BEAUTY INC. 484.76 -1.43 -0.29%
SDKs DICK SPORTING GOODS INC. 128.37 +0.29 +0.23%

Stock market performance

Teleprinter Security Last Change Change %
BBBY BED BATH & BEYOND INC. 1.62 +0.31 +23.66%

Shares of Bed Bath & Beyond gained 24% on Monday, but are down 30% year-to-date and 88% year-on-year.

Bradford Betz, Daniella Genovese and Lucas Manfredi contributed to this article.

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