Bed Bath & Beyond reported a loss in the third-quarter on Tuesday but made no mention of shutting down the business, following a week of rumors swirling around a possible bankruptcy.
Net sales of $1.259 billion slipped 33%, primarily driven by a comparable sales decline of 32% and a 70% and drop in customer traffic.
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As part of the new plan, the retailer will close 150 of its locations by the end of fiscal 2022 and has also initiated incremental cost reductions of approximately $80 million to $100 million including overhead expense and headcount. The company is now on track to deliver roughly $500 million in yearly savings.
The stock has lost 90% of its value over the past 12 months and is trading in the $1 range.
Sue Gove, President & CEO of Bed Bath & Beyond said in the release, the retailer implemented a turnaround plan at the beginning of the third quarter, “following a period when our merchandise and strategy had veered away.”
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“Although we moved quickly and effectively to change the assortment and other merchandising and marketing strategies, inventory was constrained and we did not achieve our goals,” she continued. “We will continue to rebalance our assortment towards national brands and refine our owned brands mix to reflect the deep understanding of our customer.”
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“We are implementing our plan expeditiously while managing our financial position in a changing landscape,” she added.