Bed Bath & Beyond’s fiscal third-quarter sales dropped 33 per cent as the home goods retailer strives to strike the right balance with its customers.
Sales fell to USD 1.26 billion in the three months ended November 26 from USD 1.88 billion the previous year. Sales at stores that have been open at least a year, a key indicator of a retailer’s health, fell 32 per cent.
Zacks Investment Research polled analysts, who predicted higher revenue of USD 1.43 billion.
Sue Gove, President and CEO, stated in a prepared statement on Tuesday that the company is working to adjust its merchandise and strategy, which has shifted away from customer preferences.
She stated that the company wants its customers to know that it hears them and works hard every day to meet their needs.
In the third quarter, the retailer lost USD 393 million, or USD 4.33 per share. This compares to a loss of USD 276.4 million, or USD 2.78, the previous year.
After adjusting for certain items, its adjusted loss per share was USD 3.65. Wall Street predicted a loss of USD 2.36 per share.
Bed Bath & Beyond warned last week that it may need to file for bankruptcy as it struggles to attract customers. It stated that it is considering several options, including asset sales and business restructuring in bankruptcy court. However, the chain admitted that even those efforts might fail.
In an effort to turn around its business, Bed Bath & Beyond announced in August that it would close stores and lay off employees. It closed approximately 150 of its own stores and reduced its workforce by 20 per cent.
Before the market opened, shares of the Union, New Jersey-based company jumped 13 per cent to USD 1.82.
