Bed Bath & Beyond Q3 Sales Drop
Net sales at Bed Bath & Beyond decreased by one-third in the third quarter as company officials continue their efforts to develop a plan to keep the retailer open for business.
For the three months ended Nov. 26, company-wide net sales were $1.259 billion, a decrease of 33% year-over-year. Comparable store sales across the company were down 32%, with comps at Bed Bath & Beyond banner stores off 34% and buybuy BABY comparable store sales down in the low 20s percent.
Net loss for the quarter was $393 million that included $100.7 million of non-cash impairment charges related to certain store-level assets. Net Loss per diluted share was $4.33.
Company officials said they are on track to complete approximately 150 store closures by the end of fiscal 2022.
"At the beginning of the third quarter, we initiated a turnaround plan anchored on serving our loyal customers, following a period when our merchandise and strategy had veered away from their preferences,” said Sue Gove, president & CEO of Bed Bath & Beyond. “Although we moved quickly and effectively to change the assortment and other merchandising and marketing strategies, inventory was constrained and we did not achieve our goals.”
She said the retailer will continue to rebalance its assortment towards national brands and refine its owned brands mix to reflect the needs of its customers.
Gove also reiterated the company is continuing to work with advisors as the retailer considers all strategic alternatives to accomplish its near- and long-term goals.
“Multiple paths are being explored and we are determining our next steps thoroughly, and in a timely manner,” she said. “We are committed to updating all stakeholders on our plans as they develop and finalize – particularly our employees and partners, who are the essential catalysts of our business and the cornerstones of our future."
Just after the start of the New Year, Bed Bath & Beyond said among the options it was weighing was the possibility of filing for bankruptcy and selling assets among others.