Bed Bath & Beyond reports quarterly loss, bankruptcy threat looms
Bed Bath & Beyond Inc on Tuesday reported a quarterly lack of about US$393 million after a troublesome third quarter that it hoped would offer a monetary cushion to its months-long money burn.
The firm didn’t say if it might file for chapter after saying final week it was working with outdoors advisers to take a look at numerous choices after years of weakening gross sales.
The firm didn’t take questions from analysts on its Tuesday earnings name “in light of the ongoing review of strategic alternatives,” stated Susie Kim, head of investor relations.
Bed Bath & Beyond stated it began price reductions of about $80 million to $100 million throughout the business, together with overhead bills and headcount.
Net gross sales fell 33% to $1.26 billion in its third quarter as inflation strained customers’ pockets and buyers targeted on merchandise apart from house items, furnishings and decor – merchandise which can be core to Bed Bath & Beyond’s stock combine.
Bed Bath & Beyond’s stock fell to $1.44 billion in its third quarter, down 24.9% year-on-year, after shedding a few of its owned manufacturers together with Wild Sage and providing steep Black Friday reductions to clear extra merchandise.
Chief Executive Sue Gove stated the corporate didn’t meet its targets in altering Bed Bath & Beyond’s assortment because it handled “credit line constraints” and distributors searching for faster funds.
“This led to lower receipts and, therefore, lower in-stock levels, in the 70% range, which hampered our sales further in an already competitive environment,” Gove stated.
Despite efforts to extend nationwide manufacturers together with Cuisinart and UGG to lure buyers to shops, the corporate’s foot visitors fell 23.1% in November in comparison with the earlier 12 months, in line with knowledge from Placer.ai.
The big-box retailer is contemplating skipping its debt funds due on Feb. 1 to preserve money forward of a doable chapter submitting, Reuters reported earlier.
Bed Bath & Beyond reported $153.5 million in money and money equivalents, a steep year-over-year decline from $509 million a 12 months earlier.
Bed Bath & Beyond stated final week it was exploring choices, together with chapter, after taking up $375 million in financing in August and failing to persuade bondholders to swap out their investments for brand spanking new debt earlier this month.
It reported a $3.65 non-GAAP loss per share, lacking Wall Street’s estimates for a loss per share of $2.23.
Shares of the New Jersey-based firm rose 6% in early buying and selling.
Reporting by Arriana McLymore in New York City and Deborah Sophia in Bengaluru; Editing by Shounak Dasgupta and Bernadette Baum
