Bed Bath & Beyond’s Doomsday

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Bed Bath & Beyond shareholders will be watching closely on Tuesday morning earnings report, after a series of financial setbacks for the company that could culminate in bankruptcy. The national merchandise retailer is scheduled to report quarterly results Tuesday at 8:15 am ET.

Bed Bath & Beyond last week delayed reporting its fiscal third-quarter financial results, saying it had determined the need for additional time to complete its end-of-quarter closing procedures. These procedures included the evaluation of its results together with quarterly tests for impairment of long-lived assets.

Bed Bath & Beyond was among the retailers that initially benefited from the Covid-19 outbreak as lockdowns and work-from-home directives forced Americans to shelter-in-place. As pandemic restrictions ease, sales plummet. In response, the company changed strategy, leading to a revolving door of executives amid increasing store closings and rumors of imminent bankruptcy.

BED BATH & BEYOND BANKRUPTCY COULD HAPPEN ‘THIS MONTH’

Former Target executive Mark Tritton was announced as CEO of Bed Bath & Beyond in June. (Photo by Gary Gershoff/Getty Images | Istock/Getty Images)

In June, the company parted ways with former Target executive, triton brandafter just three years in the captain’s chair, following declining sales in consecutive quarters.

Tritton led the company’s transformation strategy, which has included store remodelingclosure underperforming stores and introducing a Private label line called Own Brands. However, the efforts have not been enough to turn around the company’s struggling business.

In it first quarter of 2022, Bed Bath & Beyond’s net loss widened to $358 million, or $4.49 a share, from $51 million, or 48 cents a share, a year ago. Comparable total sales for the quarter fell 23% year-over-year.

Net loss widened again next quarter to $366 million, or $4.59 per share. Compensation sales slumped further, falling 28%.

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In September, company Financial Director Gustavo Arnal committed suicide and has since been named in a class action lawsuit alleging that he and the majority shareholder, GameStop Chairman Ryan Cohen, artificially inflated the value of the company in a “inflate and dump” scheme.

Also in September, the company launched a List of 56 stores which will close At the time, the company was drawing up a restructuring plan, which has since failed according to the latest update.

In October, Sue Gove officially he assumed the role of chief executive officer after serving several months on an interim basis and being unanimously approved by the company’s board of directors.

The company has been trying to swap debt to help with its liquidity problems.

BED BATH & BEYOND OFFERS Gloomy Warning

BB&B’s problems are ‘more company problems than retail industry’

While declining sales and executive changes have rocked Bed Bath & Beyond since the start of the pandemic, the successes of brick-and-mortar and online retailers suggest the problem lies hidden. (Michael M. Santiago/Getty Images/Getty Images)

In an interview with FOX Business on Monday, Michael Baker, a senior research analyst at DA Davidson, said: “Bed Bath and Beyond has suffered a long, slow loss of market share as others have become more aggressive in the space. over the past decade.” . or more”.

“This includes online competitors like Amazon and Wayfair, as well as traditional retailers like Target and Walmart,” he continued. it’s more about company-specific issues than retail as a whole.”

“In 2022, eight of 14 retail stocks outperformed the market, with five of the companies despite the S&P 500’s 19.4% drop.”

stock performance

Shares of Bed Bath & Beyond gained 24% on Monday but are down 30% year-to-date and 88% in a year-long period.

Bradford Betz, Daniella Genovese, and Lucas Manfredi contributed to this article.