Global Supply Crisis Takes A Toll On Bed Bath & Beyond, Plummeting Profit

Bed Bath & Beyond (BBBY) on Thursday reported a crash in revenue after dealing with supply complications.

This hit on the retail store’s fiscal second quarter led its revenue to fall from $2.69 billion to $1.99 billion, or a 26% decrease. As for the retailer’s earnings per share, it was four cents compared to the expected 52 cents.

Bed Bath & Beyond is not the only retailer facing the impacts of the global supply crisis. On Sept. 22, Costco warned its customers they will experience delays on their toilet paper orders due to supply shortages. Meanwhile, Ford and General Motors announced big cuts to their production schedules following chip shortages.

Organizations like the International Chamber of Shipping and others in the transport industry are putting pressure on members of the United Nations to help ease the global supply shortage that could continue into the holidays.

The group sent an open letter on Wednesday to the UN General Assembly urging governments to restore freedom of movement to transport workers and give them priority to receive vaccines authorized by the World Health Organization in order to secure global supply chains. If they do not assist, they warn of a "global transport system collapse."

"Global supply chains are beginning to buckle as two years' worth of strain on transport workers take their toll," the letter read. "All transport sectors are also seeing a shortage of workers, and expect more to leave as a result of the poor treatment millions have faced during the pandemic, putting the supply chain under greater threat."

Bed Bath & Beyond Chief Executive Mark Tritton said in a statement that the supply chain complications have been “pervasive,” adding that due to the rise of COVID-19 and hesitancy surrounding the Delta variant, “sales did not materialize as we had anticipated.”

Tritton projects a stronger fourth quarter as it heads into the holiday season.

“While our results this quarter were below expectations, we remain confident in our multi-year transformation,” Tritton said in a press release.

At market close Thursday, shares of Bed Bath & Beyond were trading at $17.28, down $4.92, or 22.14%.