Supply chain issues pressure Bed Bath & Beyond in 3Q
Bed Bath & Beyond’s fiscal third-quarter loss widened, with the home goods retailer saying supply chain issues are continuing to squeeze its business
Losses widened at Bed Bath & Beyond as a tangled global supply chain continued to squeeze sales and the home goods chain lowered expectations for its final fiscal quarter, and also its full-year revenue.
The Union, New Jersey, company lost $276.4 million, or $2.78 per share, for the three months ended Nov. 27. The per-share losses adjusted for restructuring costs and other items was 25 cents, much worse than the break-even quarter industry analysts had projected, according to Zacks Investment Research.
The company last year lost $75 million in the quarter, or 61 cents per share.
Revenue was $1.88 billion, down sharply from $2.62 billion and also short of the $1.96 billion that Wall Street was looking for.
Bed Bath & Beyond said that it struggled to get everything on shelves that shoppers wanted amid ongoing issues tied to backups in the supply chain as the U.S. economy emerges from the worst of the pandemic.
Those constraints resulted in an estimated $100 million impact on the quarter and an even higher impact in December, said CEO Mark Tritton in a prepared statement.
Comparable sales, which includes stores and digital, declined 7% in the third quarter.
For the current quarter ending in February, Bed Bath & Beyond said it now expects revenue in the range of $2.1 billion. Analysts surveyed by Zacks had expected revenue of $2.28 billion.
The company now anticipates full-year revenue of $7.9 billion. Its prior outlook was for revenue between $8.1 billion and $8.3 billion. Analysts polled by FactSet predict revenue of $8.14 billion.
Before the opening bell Thursday, shares in Bed Bath & Beyond Inc., which had been among the “meme” stocks that got a lot of attention early this year tumbled 9%, only to bounce back and trade up 9%.
This year, large groups of individual investors bought up shares of beaten-down companies, or meme stocks, like GameStop and AMC Entertainment, causing institutional investors like hedge funds to lose billions.
It was not clear what led to the reversal in the price of shares early Thursday.
—————
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on BBBY at https://www.zacks.com/ap/BBBY
