Bed Bath & Beyond reported $1.26 billion in revenue, much lower than Wall Street onlookers expected, as the home goods company struggled to strike the right balance with its shoppers.
The company’s third-quarter earnings arrive as company officials have already behind at filing for bankruptcy protection. Bed Bath & Beyond also said it lost $393 million during the quarter ended November 26.
The financial results reported Tuesday do not bode well for a company that spent the pandemic years being prompted up by meme stock investors.
“A third of revenue has vanished, plunging an already beleaguered company into the depths of chaos,” Neil Saunders, managing director of GlobalData, said in a statement.
CEO Sue Gove said in a statement Tuesday that the company is working on adjusting its merchandise and strategy, which has moved away from shoppers’ preferences.
“We want our customers to know that we hear them and are charging ahead every day to meet their needs,” she said.
Bed Bath & Beyond experienced a wave of popularity last year as Ryan Cohen, the billionaire founder of online pet food company Chewy, bought more than 7 million shares in the company. hey sold those shares last August in a move that netted him $178 million and caused a wide selloff among meme stock investors.
The company made headlines again in September when its former chief financial officer died unexpectedly after jumping from a skyscraper in New York.
The company, which has already been cutting costs, said Tuesday it will slash an additional $80 million to $100 million, including an unspecified round of layoffs.
“In a tail spin”
Bed Bath & Beyond said last week that it’s looking at ways to turn things around, including selling assets or restructuring its business. Company officials also acknowledged that those efforts may not be successful.
Mired in a prolonged sales slump, the company announced last year that it would revert to its original strategy of focusing on national brands, instead of pushing its own store labels.
Bed Bath & Beyond announced in August that it would close stores and lay off workers in a bid to turn around its business. It announced it would close about 150 of its namesakes stores and slashed its workforce by 20%. The company said Tuesday that it was on track to close 150 stores that it mentioned last summer.
Saunders said he is not optimistic about the company’s future.
“In our view, Bed Bath & Beyond has completely lost control and is in a tailspin; and with the ground approaching almost, survival now looks unlikely,” he said.