A person seen at a Bed Bath & Beyond store in Recent York City on January 5, 2023.
Ziyu Julian Zhu | Xinhua News Agency | Getty Images
A shower in bed and more on Tuesday posted larger-than-expected quarterly losses as its chief executive admitted that the struggling retailer’s recovery plan had fallen wanting its goals.
Days after the corporate warned of a possible bankruptcy, it reported negative operating money flow of $307.6 million for the third quarter and rising net losses.
Bed Bath lost $393 million within the period, which is even worse than the $385.8 million quarterly loss it forecast last week and 42% greater than the loss it posted within the previous quarter.
The quarterly losses include an estimated $100 million in impairment losses, which the corporate said Tuesday was related to “certain store-level assets.”
Chief Executive Sue Gove said on Tuesday that the corporate was working to resolve its cascading financial problems in a “timely manner”. She repeated the corporate’s press release in remarks in regards to the roughly 10-minute earnings call and declined to reply questions from analysts.
Here’s how the vendor did in a period of three months which ended on November 26 in comparison with analysts’ predictions based on Refinitiv data:
- Loss per share: adjusted $3.65 versus expected $2.23
- Revenue: $1.26 billion vs. $1.34 billion expected
The corporate’s net loss rose to $393 million, or $4.33 per share, compared with a lack of $276 million, or $2.78 per share, a 12 months ago.
Comparable sales fell by 32%. Banner of the identical name Bed Bath & Beyond’s comparable sales fell 34%, while Buybuy Baby’s comparable sales were within the low 20% range.
Last week, the corporate reported its net sales for the fiscal third quarter and said it was expected to be around $1.26 billion – down from $1.88 billion within the period a 12 months ago.
This initial announcement from the homeware retailer, which is struggling to remain in business, got here alongside a “going concern” warning. Within the filing, he stated that he was at risk of running out of cash to cover expenses and may need to file for bankruptcy. He said he was attempting to attract customers to stores and reverse declining sales.
As well as, the corporate says, it’s becoming increasingly difficult to maintain stock on shelves as suppliers adjust payment terms or stop shipping as a result of Bed Bath’s financial troubles. The corporate’s market value fell to a modest $142.8 million. Still, its shares were up about 12% in Tuesday’s premarket trading.
“While we quickly and effectively modified our range and other merchandising and marketing strategies, stocks were limited and we didn’t meet our targets,” Gove said in a Tuesday announcement.
Nevertheless, she said the retailer has aggressively cut costs and is on target to shut the 150 stores it previously announced. Its operating expenses fell to $583.6 million, down from $698 million last 12 months.
“Our organization is more streamlined and we’ve adopted a more focused infrastructure that reflects our current business,” Gove said.
The retailer features three banners: its namesake baby chain, Buybuy Baby; and her health and wonder banner, Harmon.
This story is evolving. Check for updates.