Bed Bath & Beyond Announces a 28% Plummet in Sales

Bed Bath & Beyond Announces a 28% Plummet in Sales

Bed Bath & Beyond (NASDAQ: BBBY) reported a 28% dip in fiscal second-quarter sales on Thursday as the company struggled to attract customers. Nevertheless, the retailer says that its efforts to clear excess inventory are slowly gaining traction and believes its cash flow will break even during the fourth quarter.

The American retail chain reported an earnings loss of USD3.22 per share, compared to the expected loss of USD1.85 a share. Revenue amounted to USD1.44 Billion, below analysts’ anticipated USD1.47 Billion. Additionally, the company’s net loss fell dramatically to USD366 Million, from the previous year’s USD73 Million.

Sue Gove, Director & Interim CEO of Bed Bath & Beyond said, “Our results for the second quarter came in as previously expected and announced. While our sales and profit results do not yet reflect the strategic and financial actions we have initiated to change our performance, they do demonstrate sequential progress in several key areas. In the first quarter, we experienced a significant dislocation between sales and inventory that we began to address immediately during the second quarter. Aggressive inventory optimization actions, including accelerated markdowns and strategic promotions, led to double-digit improvement in this gap.”

One of Bed Bath and Beyond’s star businesses, Buybuy Bay, also posted disappointing results for the quarter. The division’s comparable sales fell in the high teens in comparison with the growth of high teens within the same quarter of the previous year.

Ms. Gove continued on to say: “We have worked quickly to deploy strategic and financial changes swiftly to increase cash through business growth and lowering our cost structure by approximately $250 million in the second half of fiscal 2022, or an expected $500 million on an annualized basis. We are confident that our current liquidity will enable the necessary changes we are implementing. I want to thank our teams for their proven dedication and resilience during this extraordinary and important time for our organization. We are more focused than ever on demonstrating improvement in the coming quarters.  Regaining market share and enhancing liquidity are our top priorities.”

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