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Bed Bath & Beyond shareholders will keep a close eye on Tuesday morning’s earnings report, following a string of financial setbacks for the company that could culminate in bankruptcy. The domestic merchandise retailer is slated to report quarterly results on Tuesday at 8:15 a.m. Eastern time.
Last week, Bed bath & Beyond delayed reporting fiscal third quarter financial results, stating it had determined the need for additional time to complete its quarter-end close procedures. These procedures included the evaluation of its results in conjunction with quarterly long-lived asset impairment testing.
Bed Bath & Beyond was among retailers who initially benefited from the COVID-19 outbreak as lockdowns and work from home directives forced Americans to shelter in place. As pandemic restrictions eases, sales plummeted. In response, the company changed strategies, leading to a revolving door of executives amid mounting store closures and rumors of imminent bankruptcy.
BED BATH & BEYOND BANKRUPTCY COULD HAPPEN ‘THIS MONTH’
Former Target executive, Mark Tritton, was ousted as Bed Bath & Beyond CEO in June (Photo by Gary Gershoff/Getty Images | Istock / Getty Images)
In June, the company parted ways with former Target executive, Mark Tritton, after just three years in the captain’s chair, following plunging sales over back-to-back quarters.
Tritton led the company’s transformation strategy, which has included remodeling stores, closing underperforming stores and introducing a private label line called Owned Brands. However, the efforts have not been enough to turn the company’s struggling business around.
In the first quarter of 2022, Bed Bath & Beyond’s net loss widened to $358 million, or $4.49 per share, from $51 million, or 48 cents per share, a year ago. Total comparable sales for the quarter plunged 23% year over year.
The net loss widened again next quarter to $366 million, or $4.59 per share. Comp sales plunged further, falling 28%.
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In September, company CFO Gustavo Arnal committed suicide and has since been named in a class-action lawsuit alleging that he and majority shareholder, GameStop Chair Ryan Cohen, artificially inflated the company’s value in a “pump and dump” scheme.
Also in September, the company released a list of 56 stores that will close. At the time, the company was putting together a turnaround plan, which has since fallen flat based on the latest update.
In October, Sue Gove officially assumed the role as chief executive officer after serving several months in an interim capacity and being unanimously approved by the…
Read More: Bed Bath & Beyond’s day of reckoning