Zinger Key Points
- Bed Bath & Beyond said second-quarter revenue decreased 28% year-over-year to $1.44 billion.
- "We experienced a significant dislocation between sales and inventory that we began to address immediately," Sue Gove says.
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Bed Bath & Beyond Inc BBBY reported fiscal second-quarter results on Thursday. Here's a rundown of the report.
Bed Bath & Beyond's Q2: Bed Bath & Beyond said second-quarter revenue decreased 28% year-over-year to $1.44 billion, which missed average analyst estimates of $1.45 billion, according to Benzinga Pro.
The company said the decline was related to the impact from fleet optimization activity.
Comparable sales fell 2% year-over-year, reflecting legacy merchandise assortments and continued trends in customer traffic.
Bed Bath & Beyond reported a quarterly net loss of $3.22 per share, which missed average analyst estimates for a loss of $1.85 per share.
"While our sales and profit results do not yet reflect the strategic and financial actions we have initiated to change our performance, they do demonstrate sequential progress in several key areas," said Sue Gove, director and interim CEO of Bed Bath & Beyond.
"In the first quarter, we experienced a significant dislocation between sales and inventory that we began to address immediately during the second quarter. Aggressive inventory optimization actions, including accelerated markdowns and strategic promotions, led to double digit improvement in this gap."
Bed Bath & Beyond maintained its full-year 2022 guidance. The company continues to expect comparable sales in the 20% range. SG&A expenses are expected to be $250 million below last year and capital expenditures are expected to be approximately $250 million, down from $400 million.
"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. We are confident that our current liquidity will enable the necessary changes we are implementing," Gove said.
Related Link: Setting The Stage For BBBY Q2 Earnings
BBBY Price Action: Bed Bath & Beyond has a 52-week high of $30.06 and a 52-week low of $4.38.
The stock was up 5.11% at $6.79 premarket Thursday.
Photo: Mike Mozart from Flickr.
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