Bed Bath & Beyond (NASDAQ: BBBY) shares plummeted 8% during premarket trading Wednesday after reporting a plunge in its fiscal fourth-quarter sales. Amid continuous store closures and the selling of assets, the company experienced a double-digit loss.
“There are some positive things, but it’s still moving,” said Jessica Ramirez, a retail research analyst for Jane Hali & Associates. “Knowing the Street, they want these turnarounds quite quickly. By this time, investors want things to be a bit in better shape.”
The retailer reported earnings of USD0.40 per share, compared to the anticipated USD0.31 a share. Revenue amounted to USD2.62 Billion, lower than the expected USD2.63 Billion.
“Fiscal 2020 was a year of fast-paced transformation in which we reformed the past, overcame extraordinary circumstances of the present, and established a firm foundation for the future, said Mark Tritton, Bed Bath & Beyond’s President and CEO.
Nevertheless, same-store sales increased 4% and online sales rose 86% throughout the quarter, according to the company. Furthermore, it revealed that 41% of online sales were fulfilled by stores.
Bed Bath & Beyond continues to support its fiscal 2021 outlook, published in January, which highlights sales between USD8 Billion and USD8.2 Billion. Experts are predicting 2021 sales of USD8.18 Billion.
“We are excited to start fresh in 2021 with our sharpened size and scale, a healthier portfolio of core banners and a stronger financial position to execute the first phase of our 3-year transformation journey.”