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Bed Bath & Beyond (BBBY) Q3 2023 earnings

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A person is seen at a Bed Bath & Beyond store in Latest York, on Jan. 5, 2023.

Ziyu Julian Zhu | Xinhua News Agency | Getty Images

Bed Bath & Beyond on Tuesday posted wider quarterly losses than expected as its chief executive acknowledged the struggling retailer’s turnaround plan had not achieved its goals.

Days after the corporate warned of potential bankruptcy, it painted an excellent more dire picture of its funds. Bed Bath lost $393 million through the fiscal third quarter, it said Tuesday, worse even than the $385.8 million quarterly loss it projected just last week and a 42% increase from year-ago losses.

Bed Bath’s net losses have now exceeded $1.12 billion for the primary nine months of the fiscal yr.

CEO Sue Gove said that the corporate has already cut costs and can slash an extra $80 million to $100 million, including an unspecified variety of layoffs, and that it’s on target to shut the 150 stores it had previously announced. Bed Bath’s operating expenses have dropped to $583.6 million, compared with $698 million last yr.

Here’s how the retailer did within the three-month period ended Nov. 26 compared with what analysts were anticipating, based on Refinitiv data:

  • Loss per share: $3.65 adjusted vs. $2.23 expected
  • Revenue: $1.26 billion vs. $1.34 billion expected

Because the home goods retailer fights to remain in business, its mounting losses have tripped up its turnaround strategy. It desires to bring back more national brands and popular products, because it phases out a few of its private labels. Yet suppliers, spooked by Bed Bath’s funds, have modified payment terms or stopped shipping goods — leaving store shelves emptier than usual.

Gove said Tuesday that the corporate is working to deal with its cascading financial problems in a “timely manner.”

“Although we hurried and effectively to alter the assortment and other merchandising and marketing strategies, inventory was constrained and we didn’t achieve our goals,” Gove said in Tuesday’s release.

She echoed the corporate’s news release in remarks on an roughly 10-minute earnings call and declined to take analyst questions.

Bed Bath didn’t share sales trends for the vacation season, which falls in the corporate’s fiscal fourth quarter. Gove said Bed Bath used money it made in December to get more inventory.

The retailer includes three banners: its namesake; its baby supplies chain, Buybuy Baby; and its health and wonder banner, Harmon.

Comparable sales across Bed Bath & Beyond’s business dropped by 32%. Its namesake banner’s comparable sales fell by 34%. Buybuy Baby’s comparable sales declined within the low 20% range. It didn’t specify comparable sales trends for its health and wonder chain, Harmon.

Net sales of $1.26 billion mark a roughly 33% decline from $1.88 billion within the year-ago period.

Last week, the corporate previewed its net sales and net losses for the fiscal third quarter in a “going concern” warning. Within the filing, it said it’s susceptible to running out of cash to cover expenses, because it struggles to draw customers to stores and switch around declining sales.

The corporate’s market value has fallen to a meager $142.8 million. Still, its shares were up greater than 15% in morning trading Tuesday.

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