(Bloomberg) — Bed Bath & Beyond Inc. reported an even wider third-quarter loss than it had warned of just last week, as its struggles to keep shelves stocked deepened its ongoing crisis.
- The retailer reported a net loss of $393 million, wider than the $386 million it had said it was likely to report. In the previous quarter, the company had a net loss of $366 million.
- Bed Bath & Beyond said it has cash, equivalents and investments of about $200 million, and total liquidity of about $500 million as of the fiscal third-quarter. Cash flow is at a deficit of $307.6 million.
- See more details.
- The beleaguered retailer said sales in the three months that ended on Nov. 26 fell around 33% to $1.3 billion, in line with preliminary results published last week, when the company also said it might have to seek bankruptcy. That’s likely within the first quarter of this year, Bloomberg News has reported, citing people with knowledge of the plans. The company has reported double-digit declines in sales for six consecutive quarters.
- The company said the plunge in sales was driven by its attempts to clear its private-label brands, part of a strategic pivot, as well as discounts during the third-quarter.
- Bed Bath & Beyond said it was on track to shutter the 150 lower-performing stores it had targeted for closure last year, part of a broader cost-cutting plan.
- Chief Executive Officer Sue Gove said in the statement that inventory was constrained during the third quarter. Moving forward, she said, the company is “actively pursuing higher in-stock levels to meet proven demand.” She added: “We are implementing our plan expeditiously while managing our financial position in a changing landscape.”
- The shares edged up 0.6% in premarket trading Tuesday.
- Read the statement.
- See Bed Bath & Beyond estimates.
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