UNION, NJ — The losses widened for troubled retail brand Bed Bath & Beyond during the third quarter of fiscal 2022.
The sagging earnings come during a week of rough news for the Union, NJ-based home goods retailer. In a filing with the SEC last week, it expressed doubt about its ability to continue operations without pursuing alternate strategies, and Reuters reported that the beleaguered retailer might begin skipping debt payments coming due Feb. 1 as it prepares for a bankruptcy filing.
For the three months ended Nov. 26, the retailer reported net sales of $1.259 billion, down 33% from $1.878 billion over the same period in 2021. Year-to-date, Bed Bath & Beyond’s net sales total $4.160 billion, down 28.5% from $5.816 billion through nine months of FY 2021.
By channel, comparable sales fell 31% in stores and 33% via e-commerce compared to the same three months of 2021.
The company posted a net loss of $392,966 million in the quarter, or a decrease of $4.33 per diluted share, compared with a loss of $276,429 million in Q3 of 2021, or a decrease of $2.78 per diluted share.
“At the beginning of the third quarter, we initiated a turnaround plan anchored on serving our loyal customers, following a period when our merchandise and strategy had veered away from their preferences,” said Sue Gove, president and CEO. “Although we moved quickly and effectively to change the assortment and other merchandising and marketing strategies, inventory was constrained, and we did not achieve our goals.
“We will continue to rebalance our assortment towards national brands and refine our owned brands mix to reflect the deep understanding of our customer, along with the selection and value only we can offer in the home and baby markets,” she added. “We are actively pursuing higher in-stock levels to meet proven demand.”
A lack of foot traffic isn’t helping matters, either. Placer.ai, a foot traffic analytics firm noted that in December 2022 visits were down 26.5% compared with December 2021, and November visits were down 23.1% compared with the same month a year prior.
Through the first nine months of FY 2022, Bed Bath & Beyond’s loss came in at $1.117 billion, or $13.40 per diluted share, compared with a loss of $400.518 million in 2021, or a decline of $3.90 per share.
Bed Bath is on track to deliver $250 million in selling, general and administrative savings vs. last year for the second half of FY 2022 and trending toward completing approximately 150 store closures by the end of the fiscal year. It has also identified an additional $80 million to $100 million in savings opportunities across the supply chain that will improve cost to serve and time to deliver for customers.
“As we shared last week, we continue to work with advisors as we consider all strategic alternatives to accomplish our near- and long-term goals,” Gove said. “We have a team, internally and externally, with proven experience helping companies successfully navigate complex situations and become stronger. Multiple paths are being explored, and we are determining our next steps thoroughly, and in a timely manner.
“We are committed to updating all stakeholders on our plans as they develop and finalize – particularly our employees and partners, who are the essential catalysts of our business and the cornerstones of our future.”