Bed Bath & Beyond’s shares rose Thursday despite the company’s third quarter earnings raising an estimated $ 100 million due to supply chain disruptions.
|BBBY||BED BATH & BEYOND INC.||13.80||-0.63||-4.37%|
The retailer posted a net loss of $ 276 million, or $ 2.78 per share, for the third quarter, compared to a loss of $ 75 million, or 61 cents, a year earlier. Adjusted for one-off effects, the loss was 25 cents per share. Net sales declined to $ 1.88 billion for the second straight quarter, down 28% from $ 2.62 billion last year, while like-for-like total sales decreased 7% year over year.
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Comparable sales of Bed Bath & Beyond banners were down 10% year-over-year, with target categories such as bedding, bathroom, kitchen, food preparation, interior design, and home organization, which account for approximately two-thirds of the banner’s total sales, down 13%. Year for year.
Meanwhile, the Buybuy BABY banner achieved its fourth quarter in a row with comparable sales growth, up in the mid-tens compared to last year and driven by double-digit store growth and high-single-digit digital growth.
Though Mark Tritton, CEO of Bed Bath & Beyond, admitted that the company’s quarterly revenue momentum “was not what we wanted it to be,” he noted that the company is well on its way to revenue of its first year of transformation raise approximately $ 1.3 billion before pursuing its Investor Day goals and further improving its profitability and market share.
The company found that its Beyond + loyalty program grew by nearly half a million members in the third quarter and that its adjusted gross margin has significantly exceeded its plans and is a strong one above 2020 and 2019 due to market pricing, ad optimization, and product mix measures to combat Rise in inflation and ubiquitous headwinds in the freight and supply chain.
So far, Bed Bath & Beyond has closed 170 stores as part of its three-year transformation and expects to close 200 stores by the end of the year.
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In addition to the announcement of its own digital marketplace and a collaboration with Kroger, Bed Bath & Beyond intends to expand its portfolio of own brands in order to buy BABY in 2022 given the stabilized sales results of the company. The company also expects to complete its $ 1 billion three-year share buyback plan by the end of fiscal 2021, two years ahead of schedule.
Looking ahead, the company expects fourth quarter revenue of approximately $ 2.1 billion from its core businesses. On a comparable sales basis, Bed Bath & Beyond expects a decline in the high single digits compared to the same period in the previous year and adjusted earnings per share of up to 15 cents. Bed Bath & Beyond is also revising its full year outlook to a net sales forecast of approximately $ 7.9 billion, comparable high-single-digit sales growth and adjusted earnings per share of up to 15 cents.