Bed Bath and Beyond (NASDAQ:BBBY)
Historical Stock Chart
2 Months : From Sep 2019 to Nov 2019
By Micah Maidenberg
This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (October 3, 2019).
Bed Bath & Beyond Inc. reported another quarter of falling sales and continues searching for a permanent chief executive to lead the struggling company.
Sales at the retailer slumped 7% to $2.72 billion in its fiscal second quarter, slightly lower than expected by analysts polled by FactSet. The company has now reported declining year-over-year sales in three consecutive quarters. Shares fell about 3% in postmarket trading.
Bed Bath & Beyond has been searching for a new direction following missteps that left revenue lower and investors unhappy about the company's strategy.
Former executives have said the company lacked a clear vision about how to compete in a retail sector upended by e-commerce. Bed Bath & Beyond had relied on coupons to draw shoppers and left stores cluttered and difficult for shoppers to navigate.
In March, three investors in the company called for the ouster of longtime Chief Executive Steven Temares, saying Bed Bath & Beyond had failed to update its business model.
He stepped down in May and was succeeded in an interim capacity by Mary Winston, a former executive at Dollar Tree Inc.'s Family Dollar and grocery chain Giant Eagle Inc. She remains the interim CEO.
The company on Wednesday reiterated that it has made progress in its effort to find and hire a permanent chief executive.
It also has said it is working with Goldman Sachs Group Inc. advisers to evaluate various strategic options for the company.
Bed Bath & Beyond reported a loss of $138.8 million, or $1.12 a share, for its fiscal second quarter, down from a profit of $48.6 million, or 36 cents a share, a year earlier.
The retailer recorded impairments related to its transformation efforts and paid out more in severance after layoffs and moving to outsource certain functions. In July, the Union, N.J.-based company said it would reduce staff in its corporate office by 7%, letting vice presidents, managers and others go.
Excluding severance, an inventory write-down and other costs, the company said it earned a profit of 34 cents a share, 7 cents more than expected.
Earlier this month, the company said a refresh of about 160 stores was under way. It also said it would move to offer shoppers more store-brand products, which typically are cheaper than branded alternatives, and reduce inventories by up to $1 billion.
Bed Bath & Beyond has also revamped its board. Nine new members have joined the board in recent months, according to the company.
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(END) Dow Jones Newswires
October 03, 2019 02:47 ET (06:47 GMT)
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