“After our previously announced slower sales start in September and October, we reversed the trend by November as our decline in prices improved, especially in stores. However, overall sales were under pressure despite customer demand due to the lack of availability of replenishment stocks.” and supply chain tension, which hit the quarter by an estimated $ 100 million or mid-single digits, and worsened in December. ” Mark Tritton, President and CEO of Bed Bath & Beyond said.
“Still, our customer acquisition strategy for the Bed Bath banner is gaining traction, as evidenced by our Beyond + loyalty program, which has grown by nearly half a million members after one of our biggest quarters for new subscribers. Our Buybuy BABY banner continues to deliver double-digit growth and we are well on the way to achieving around $ 1.3 billion in revenue in this first year of transformation – ahead of our Investor Day goals – while improving Profitability and market share, ”explained Tritton.
Bed Bath & Beyond posted net sales of $ 1,878 million for the third quarter of fiscal 2021, a 14 percent decrease related to a planned reduction in non-core banner sales and a 14 percent decrease in core sales. In the third quarter of fiscal year 2021, comparable sales also decreased by 7 percent compared to the third quarter of 2020.
“In response to a sharp rise in inflation and ubiquitous headwinds in the freight and supply chain, we swiftly implemented market-oriented pricing, advertising optimization and product mix plans. Our determined actions resulted in an adjusted gross margin that is well above plan and well above 2020 and 2019 – a key financial barometer of our three-year transformation strategy, “added Tritton.
The company continues to have strong liquidity with cash, restricted cash and investments of $ 0.6 billion in the third quarter of 2021 and approximately $ 0.7 billion as of December 25, 2021, showing positive cash flow from operations for the current quarter to date reflects period.
“Our own brands continued to achieve higher margins with higher penetration rates. We now intend to expand the Owned Brands strategy to BABY in 2022 as we are exploring margin-enhancing strategies as sales results in this store have stabilized due to our targeted efforts to improve this banner. We are identifying exciting new opportunities to increase sales and BABY is a key cornerstone of our plans, including our recently announced collaboration with Kroger and our own digital marketplace, “Bed Bath & Beyond said in a press release.
“Just as we achieved our gross margin during the quarter, our holistic focus is on improving our sales and bottom line results as we continue to transform. While we continue to aim to improve sales, we are also focusing on SG&A. We’re tracking approximately $ 100 million annually in additional spend optimization measures that are exploring areas such as store fleet optimization, fixed costs, and discretionary savings opportunities. Earlier this quarter, we also announced that we were expanding our three-year share buyback plan of $ 1 billion to Will close at the end of fiscal 2021, two years ahead of schedule, which underscores our continued confidence in our turnaround and commitment to our capital allocation framework, “said Tritton.
“Having just completed the third quarter of our multi-year plan, we will continue our strategic transformation by diagnosing and reforming our legacy business to meet our goals. As we prepare for 2022, we look forward to being in a normalized environment with a business foundation on which to grow, “concluded Tritton.
Fibre2Fashion News Desk (RR)