Bed Bath & Beyond reported net loss of $73.2M, or 72 cents per share, with net sales of $1.98B
Shares of Bed Bath & Beyond fell more than 25% on Thursday after the big box retailer warned of a significant slowdown in foot traffic at its stores in August, attributed by the company to Delta in states like Florida, Texas and California. Given for the dissemination of the version, which represent. a significant portion of the company’s sales.
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In addition, Chief Executive Officer Mark Tritton cited unprecedented supply chain challenges and higher-than-expected cost inflation, particularly at the end of the second quarter.
The company reported a loss of $73.2 million, or 72 cents per share, compared to $217.9 million, or $1.76 per share, a year ago. Excluding one-time items, Bed Beth & Beyond earned 4 cents per share, well below analysts’ expectations of 52 cents. Meanwhile, net sales stood at $1.98 billion, down 26% from $2.69 billion a year ago. Wall Street was expecting net sales of $2.06 billion.
“While our results this quarter were below expectations, we remain confident in our multi-year transformation,” Tritton said. Company earnings release.
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The company has remodeled 70 stores to date, including the NYC flagship store in Chelsea, and is on track to have 150 remodeled Bed Bath & Beyond stores by the end of 2021 and 450 by the end of its three-year transformation. Is. Tritton previously told Granthshala Business that the company also plans to launch new stores focused on growing the company’s Buy By Baby brand.
Despite the company’s challenges in the second quarter, Tritton said the Buy Buy Baby brand continued to build positive momentum from previous quarters, with double-digit growth driven by strength in apparel and travel gear and market share growth for the quarter .
Tritton also emphasized that the company’s high-margin proprietary brands, with particular strength in remodeled stores, have outpaced the company’s entry targets in the overall chain, while digital channels posted sales above 2019 levels. The ratio has almost doubled.
As of the end of the second quarter, Bed Bath & Beyond has a total of $2 billion of liquidity available.
“We are well positioned to continue our planned investments in our business and pave the way toward a more profitable future,” Tritton said. “We have the plan, the team, and the resources to unlock our potential.”
Looking ahead, Beyond Bath & Beyond forecasts third-quarter net sales to be in the range of $1.96 billion to $2 billion, with adjusted earnings per share between and 5 cents.