Bed Bath & Beyond Swings to Loss After Layoffs
03 October 2019 - 7:02AM
Dow Jones News
By Micah Maidenberg
Bed Bath & Beyond Inc. (BBBY) reported a loss for its latest
quarter, reflecting in part severance costs the company paid after
cutting jobs at its headquarters.
The company on Wednesday 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, the year earlier.
The retailer recorded impairments related to its transformation
efforts and saw higher severance costs related to layoffs and its
move 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.
An inventory write-down also resulted in higher costs.
Bed Bath & Beyond has been searching for a new direction
after missteps left revenue lower and shareholders 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.
Overall, the company reported $2.72 billion in sales for its
latest quarter, down 7% compared with last year and slightly lower
than expectations from analysts polled by FactSet.
Excluding severance, inventory write-down and other costs, the
company said it earned a profit of 34 cents a share, seven cents
more than expectations.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
October 02, 2019 16:47 ET (20:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Bed Bath and Beyond (NASDAQ:BBBY)
Historical Stock Chart
From Apr 2024 to May 2024
Bed Bath and Beyond (NASDAQ:BBBY)
Historical Stock Chart
From May 2023 to May 2024