Is Bed Bath & Beyond Grasping For Air Amid Store Closures And Sales Losses?

Bed Bath & Beyond (BBBY) reported dismal earnings for fiscal Q3 2019, showing a net loss of $38.6 million. Shares of the company tanked on Thursday, dropping over 19% by mid-afternoon.

The retailer reported net sales for the quarter of $2.8 billion, down 9% over last year with comparable sales dropping 8.3%. Bed Bath & Beyond said earnings were impacted by the shorter holiday sales season.

Bed Bath & Beyond has announced a rash of store closings, pulled out of markets, and overhauled its executive team. In the last month, six executives were removed from the company under the leadership of President and CEO Mark J. Tritton, who took the position in November.

Over recent months, Bed Bath & Beyond has worked to refresh its inventory and appeal to customers that are looking to online competitors for their home décor needs. While Tritton tries to make an impact at the retailer, the future outlook still remains “pressured,” the company said.

Bed Bath & Beyond withdraw its fiscal 2019 full-year guidance upon the release of its Q3 earnings report. The move was followed by news from the company that it will share more information about its turnaround program in 2020.

At the same time, Bed Bath & Beyond said it will delay the closure of 20 stores after previously announcing it would be closing 60 locations in fiscal 2019, CNBC reported. To date, the retailer has about 1,500 stores.

"Our performance in the third quarter was unsatisfactory and underscores the imperative for change and strengthens our sense of priorities and purpose,” Tritton said in a statement.

“We must respond to the challenges we face as a business, including pressured sales and profitability, and reconstruct a modern, durable model for long-term profitable growth. Fortunately, the foundation of the Company's transformation is well underway, due in large part to the direction and support of the Board.

“We will be finalizing the details of our strategic plan over the next few months and appreciate your patience as we embark and pursue this journey to position Bed Bath & Beyond to deliver long-term, sustainable growth,” he added.

Shares of Bed Bath & Beyond stock were down 18.53% as of 2:25 p.m. EST on Thursday.