A man is seen at the Bed Bath & Beyond store in New York, on January 5, 2023.
Ziyu Julian Zhu | Xinhua News Agency | beautiful pictures
Outdoor shower bed on Tuesday posted a larger-than-expected quarterly loss as its chief executive admitted that the struggling retailer’s turnaround plan fell short of its target.
Days after the company warned of possible bankruptcy, CEO Sue Gove said the company was working to resolve its tiered financial issues in a “timely” manner.
Here’s how the retailer did in the three-month period ending November 26 compared to what analysts had predicted, based on Refinitiv data:
- 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.
Comparative sales fell 32%. Banner of the same name Bed Bath & Beyond’s comparable sales are down 34% and Buybuy Baby’s comparable sales drops are in the range of 20%.
Home goods retailer, struggling to stay in business, issued a “relevant” warning last week. In the filing, they said there was a risk of running out of money to cover costs and possibly having to file for bankruptcy. It said it was struggling to attract customers to stores and turn around declining sales.
Plus, the company says, it becomes more difficult to keep stock on shelves as suppliers adjust payment terms or stop shipping because of Bed Bath’s financial troubles. The company’s market value has dropped to $142.8 million.
“Although we moved quickly and efficiently to change our assortment and other sales and marketing strategies, inventory was limited and we didn’t meet our goals,” Gove said. said in Tuesday’s release.
Last week, the company previewed net sales and net loss in its fiscal third-quarter earnings. The company said net revenue for the third fiscal quarter, ending November 26, is expected to be around $1.26 billion — down from $1.88 billion in the same period a year. before, the company said.
It predicts a net loss of about $385.8 million in the third quarter, up nearly 40% year-over-year. The quarterly losses included a loss charge of approximately $100 million, which was not specified at the time. On Tuesday, the company said the charge was related to “several store-grade properties”. Gove said the company is on track with its previously announced plans to close 150 stores.
The retailer includes three banners: its name, baby goods chain, Buybuy Baby; and its health and beauty banner, Harmon.
This story is evolving. Please check back for updates.