Bed Bath & Beyond has warned that it may have to file for bankruptcy after reporting it’s quarterly earnings stating that it’s turnaround plan called for cost-cutting and improved partnerships with vendors, according to CNBC.
Despite their plans which were laid out back in August 2022, sales numbers have not improved.
“When you have a shift in how consumers are allocating their spending, and a recession looming potentially on the horizon, it makes it much more of an uphill battle,” said Justin Kleber, senior research analyst at Baird Equity Research.
“Being the first to bring new brands and products to our customer has always been one of our roles as a retailer,” Executive Vice President Mara Sirhal told investors during a business update back on August 31st, 2022 (via CNBC). “In the home market, there’re many D2C brands which bring their own compelling brand marketing and followers who know and want them but aren’t widely available to shop.”
Bed Bath & Beyond said on Thursday that it expects net sales for the third quarter (which ended November 26th) to be about $1.26 billion, which represents a near 33% drop from $1.88 billion it reported for the year-ago period.
Furthermore the company anticipates a net loss of about $385.8 million for the quarter, an approximately 40% jump in losses year over year, with those quarterly losses including an approximately $100 million impairment charge, which was not specified.