UNION,
N.J., Jan. 5, 2023 /PRNewswire/ -- Bed Bath
& Beyond Inc. (Nasdaq: BBBY) today provided a business update
and certain preliminary, unaudited estimated financial results for
the three months ended November 26,
2022.
For the third quarter of fiscal 2022 (ended November 26, 2022), the Company expects to report
Net Sales of approximately $1.259
billion compared to $1.878
billion in the year ago period, reflecting lower customer
traffic and reduced levels of inventory availability, among other
factors. SG&A Expense is expected to be approximately
$583.6 million compared to
approximately $698.0 million in the
year ago period, driven by the execution of cost optimization
initiatives to right-size the Company's expense structure.
The Company anticipates a Net Loss of approximately $385.8 million for the third quarter of fiscal
2022, including impairment charges of approximately $100.0 million, compared to a Net Loss of
$276.4 million in the year ago
period. These results, including any impairment charges, are
subject to further review and potential adjustment.
Sue Gove, President & CEO of
Bed Bath & Beyond said, "We have a clear vision for the future
of the company. Today's announcement underscores the importance of
having initiated a turnaround at the start of the third quarter and
why we strengthened our leadership team to execute each step with
precision. Our plan has two anchors: the first enables us to
refocus merchandising and inventory, operate more efficiently, and
grow our digital and omni-capabilities, and the second focuses on
strengthening our financial position. Transforming an organization
of our size and scale requires time, and we anticipate that each
coming quarter will build on our progress."
Ms. Gove continued, "Despite more productive merchandise plans
and improved execution, our financial performance was negatively
impacted by inventory constraints as we partnered with our
suppliers to navigate both micro- and macro- economic challenges.
Reduced credit limits resulted in lower levels of in-stock
presentation within the assortments that our customers
expect. Consequently, we have already leveraged the liquidity
gained from the holiday season to immediately pursue higher
in-stock levels with support from our key vendors. We have seen
trends improve when in-stock levels have increased."
"Strengthening our ability to serve our customers will continue
to drive our decision-making. We are resetting foundational
elements to create a stronger and more nimble infrastructure that
aligns closely with customer demand and preference. We
continue to manage our financial position amidst a changing
landscape and work with expert advisors as we consider all paths
and strategic alternatives to accomplish our short- and long-term
goals. We look forward to providing an update on these fronts
on our formal third quarter earnings call next week."
Ms. Gove concluded, "As always, our employees and partners are
our top priorities. Our unwavering engagement with our
supplier community will continue as we work together to realize our
full potential. We are a team focused on the future and I am
grateful for the dedication and hard work of those who are powering
our path forward. We will continue to steer our business
dynamically to ensure Bed Bath & Beyond, buybuy BABY and Harmon
remain destinations of choice for customers well into the
future."
Based on business performance for the third quarter of fiscal
2022, the Company has determined the need for additional time to
complete its quarter-end close procedures, including the evaluation
of its results in conjunction with quarterly long-lived asset
impairment testing. Accordingly, the Company has filed a
Notification of Late Filing with the Securities and Exchange
Commission (the "SEC") with respect to its Quarterly Report on Form
10-Q.
In addition, the Company previously commenced an exchange offer
and consent solicitation with respect to its unsecured senior
notes, which expired on January 4,
2023. While certain holders decided to tender their unsecured
notes in the exchange offer and deliver consent in the consent
solicitation, the conditions to the exchange offer and consent
solicitation have not been satisfied and the exchange offer and
consent solicitation were therefore terminated.
While the Company continues to pursue actions and steps to
improve its cash position and mitigate any potential liquidity
shortfall, based on recurring losses and negative cash flow from
operations for the nine months ended November 26, 2022, as well as current cash and
liquidity projections, the Company has concluded that there is
substantial doubt about the Company's ability to continue as a
going concern.
The Company continues to consider all strategic alternatives
including restructuring or refinancing its debt, seeking additional
debt or equity capital, reducing or delaying the Company's business
activities and strategic initiatives, or selling assets, other
strategic transactions and/or other measures, including obtaining
relief under the U.S. Bankruptcy Code. These measures may not be
successful.
About the Company
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is
an omnichannel retailer that makes it easy for our customers to
feel at home. The Company sells a wide assortment of merchandise in
the Home, Baby, Beauty and Wellness markets. Additionally, the
Company is a partner in a joint venture which operates retail
stores in Mexico under the name
Bed Bath & Beyond.
The Company operates websites at bedbathandbeyond.com,
bedbathandbeyond.ca, buybuybaby.com, buybuybaby.ca,
harmondiscount.com, and facevalues.com.
Preliminary Financial
Results
The estimated results in this press release represent the
Company's preliminary estimates of certain financial results for
the three months ended November 26,
2022, based on currently available information. The Company
has not yet finalized its results for this period and its
consolidated financial statements as of and for the three months
ended November 26, 2022 are not
currently available. The Company's actual results remain subject to
the completion of the quarter-end closing process, including the
results of the Company's impairment analysis and related tax
effects as well as a review by management and the Company's board
of directors, including the audit committee. While carrying out
such procedures, the Company may identify items that require it to
make adjustments to the preliminary estimates of its results set
forth herein. As a result, the Company's actual results could
be different from those set forth herein and the differences could
be material. Therefore, a reader should not place undue
reliance on these preliminary estimates of the Company's results.
The preliminary estimates of the Company's results included herein
have been prepared by, and are the responsibility of, the Company's
management. The Company's independent auditors have not audited,
reviewed or compiled such preliminary estimates of the Company's
results. The preliminary estimates of certain financial results
presented herein should not be considered a substitute for the
information to be filed with the SEC in the Company's Quarterly
Report on Form 10-Q for the three months ended November 26, 2022 once it becomes
available.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of Section 21 E of the Securities Exchange Act of 1934,
as amended. Words such as "expect," "will," "working," and
variations of such words and similar future or conditional
expressions are intended to identify forward-looking statements.
These forward-looking statements include, but are not limited to,
statements regarding our beliefs and expectations relating to the
filing of the Form 10-Q, the estimated reporting of financial
results and the Company's ability to execute its transformative
plans. These forward-looking statements are not guarantees of
future results and are subject to a number of risks and
uncertainties, many of which are difficult to predict and beyond
our control. Important factors that may cause actual results
to differ materially from those in the forward-looking statements
include, but are not limited to, risk factors described in the
Company's filings with the SEC, a material delay in the Company's
financial reporting, including the possibility that the Company
will not be able to file its Form 10-Q within the five-day
extension permitted by the rules of the SEC, and the outcome of the
Company's impairment and tax provision analysis. The Company
disclaims and does not undertake any obligation to update or revise
any forward-looking statement in this report, except as required by
applicable law or regulation.
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SOURCE Bed Bath & Beyond