Bed Bath & Beyond is warning investors its survival remains in question sending shares spiraling.
“While the Company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended November 26, 2022, as well as current cash and liquidity projections , the Company has concluded that there is substantial doubt about the Company’s ability to continue as a going concern,” said Sue Gove, President and CEO, in a company update.
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|BBBY||BED BATH & BEYOND INC.||1.85||-0.56||-23.03%|
On Thursday, the retail giant said it expects to report net sales of approximately $1.259 billion compared to $1.878 billion from the same time last year, reflecting lower customer traffic and reduced levels of inventory availability.
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Bed Bath & Beyond also anticipates a net loss of approximately $385.8 million for the third quarter of fiscal year 2022, including impairment charges of approximately $100 million, compared to a net loss of $276.4 million from the same time last year.
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“Transforming an organization of our size and scale requires time, and we anticipate that each coming quarter will build on our progress,” she added.