The company did not say if it would file for bankruptcy after saying last week it was working with outside advisers to look at various options after years of weakening sales.
The company did not take questions from analysts on its Tuesday earnings call “in light of the ongoing review of strategic alternatives,” said Susie Kim, head of investor relations.
Bed Bath & Beyond said it started cost reductions of about $80 million to $100 million across the business, including overhead expenses and headcount.
Net sales fell 33% to $1.26 billion in its third quarter as inflation strained consumers’ pockets and shoppers focused on products other than home goods, furniture and decor – merchandise that are core to Bed Bath & Beyond’s inventory mix.
Bed Bath & Beyond’s inventory fell to $1.44 billion in its third quarter, down 24.9% year-on-year, after shedding some of its owned brands including Wild Sage and offering steep Black Friday discounts to clear excess merchandise.
Chief Executive Sue Gove said the company did not meet its goals in changing Bed Bath & Beyond’s assortment as it dealt with “credit line constraints” and vendors seeking quicker payments. “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 said.
Despite efforts to increase national brands including Cuisinart and UGG to lure shoppers to stores, the company’s foot traffic fell 23.1% in November compared to the previous year, according to data from Placer.ai.
The big-box retailer is considering skipping its debt payments due on Feb. 1 to conserve cash ahead of a possible bankruptcy filing, Reuters reported earlier.
Bed Bath & Beyond reported $153.5 million in cash and cash equivalents, a steep year-over-year decline from $509 million a year earlier.
Bed Bath & Beyond said last week it was exploring options, including bankruptcy, after taking on $375 million in financing in August and failing to convince bondholders to swap out their investments for new debt earlier this month.
It reported a $3.65 non-GAAP loss per share, missing Wall Street’s estimates for a loss per share of $2.23.
Shares of the New Jersey-based company rose 6% in early trading.