Bed Bath & Beyond Seeks Strategic Options, Including Bankruptcy

Bed Bath & Beyond Seeks Strategic Options, Including Bankruptcy
  • Bed Bath & Beyond Inc BBBY said it expects Q3 net sales of $1.259 billion compared to $1.878 billion in the year-ago period. The company attributed lower Q3 sales to lower customer traffic and reduced levels of inventory availability, among other factors.
  • The company expects SG&A expense to be approximately $583.6 million compared to $698.0 million in the year-ago period, driven by the execution of cost optimization initiatives.
  • The company anticipates Q3 net loss of approximately $(385.8) million versus a net loss of $(276.4) million in the year-ago period. The company's Q3 FY22 loss includes approximately $100.0 million impairment charges.
  • "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,” said CEO Sue Gove.
  • BBBY has filed a Notification of Late Filing with the U.S. SEC as it needs additional time to complete its quarter-end close procedure.
  • Doubts On Going Concern: BBBY also revealed substantial doubt about its ability to continue as a going concern due to recurring losses and negative cash flow from operations, as well as current cash and liquidity projections.
  • Strategic Options: The company continues to consider all strategic alternatives, including obtaining relief under the U.S. Bankruptcy Code.
  • RelatedBed Bath & Beyond Likely To Face Heat Due To Changing Consumer Spending, Says Analyst
  • Price Action: BBBY shares are trading lower by 21% at $1.90 on the last check Thursday.
  • Photo Via Wikimedia Commons

Posted In: EarningsNewsPenny StocksGuidanceMoversTrading IdeasGeneralbankruptcyBriefs