Union, N.J. — With sales down nearly 28% and profit results showing a $366.2 million loss, second quarter results for Bed Bath & Beyond “do not yet reflect the strategic and financial actions we have initiated to change our performance,” according to Director and Interim CEO Sue Grove.
For the period ended Aug. 27, Grove added that the results “do demonstrate progress in several key areas.”
Net sales for the quarter were $1.44 billion, down 27.6% from $1.99 billion in the year-ago period. The decline reflect a comparable sales decline of 26% and a 2% drop related to the impact from fleet optimization activity. By channel, comparable sales declined 28% in stores and 22% in digital.
Profit results dropped 400.1% from the net loss of $73.2 million in last year’s second quarter. Net loss per diluted share of $4.59, compared with a loss of 72 cents per share last year, reflected approximately $1.38 of special items for the quarter, items which include restructuring costs drive by severance charges related to the departure of certain executive officers and a 20% reduction in force across corporate and supply chain.
“In the first quarter, we experienced a significant dislocation between sales and inventory that we began to address immediately during the second quarter,” said Grove in the company’s earnings release. “Aggressive inventory optimization actions, including accelerated markdowns and strategic promotions, led to double-digit improvement in this gap. Working with our supplier partners has also been an important focus area and our payables are considerably healthier than in the prior quarter as evident on our balance sheet.
“Although still very early, we are seeing signs of continued progress as merchandising and inventory changes begin,” she continued, noting improvement with in-stock positions, visual merchandising and the Welcome Rewards loyalty program.
“We have worked quickly to deploy strategic and financial changes swiftly to increase cash through business growth and lowering our cost structure by approximately $250 million in the second half of fiscal 2022, or an expected $500 million on an annualized basis,” said Grove. “We are confident that our current liquidity will enable the necessary changes we are implementing.
“We are more focused than ever on demonstrating improvement in the coming quarters. Regaining market share and enhancing liquidity are our top priorities.”