Bed Bath and Beyond’s day of reckoning

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Bed Bath & Beyond shareholders will be watching Tuesday morning closely income statement, after a series of financial setbacks that could have resulted in bankruptcy for the company. The domestic goods retailer is due to report quarterly results at 8:15 a.m. ET on Tuesday.

Last week, Bed bath & Beyond delayed reporting its third-quarter financial results, saying it determined it needed more time to complete closing procedures at the end of the quarter. These procedures include quarterly non-current asset impairment testing and evaluation of its results.

Bed Bath & Beyond was among the retailers that initially benefited The spread of Covid-19 lockdown and work-from-home directives have forced Americans to shelter in place. As pandemic restrictions eased, so did sales. In response, the company changed strategies, leading to store closings and a revolving door of executives amid rumors. imminent bankruptcy.

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Former Target executive Mark Tritton was named CEO of Bed Bath & Beyond in June. (Photo by Gary Gershoff/Getty Images | Istock/Getty Images)

In June, the company parted ways with a former Target executive. Mark Trittonafter just three years in the captain’s chair, sales declined over back-to-back quarters.

Tritton led the transformation of the company’s strategy repair shopsis closed underperforming stores and presenting a A private label line called Owned Brands. However, the efforts were not enough to turn around the company’s struggling business.

Into First quarter of 2022, Bed Bath & Beyond’s net loss widened to $358 million, or $4.49 per share, from $51 million, or 48 cents per share, a year earlier. Total comparable sales for the quarter were down 23% year over year.

In the next quarter, the net loss widened again to $366 million, or $4.59 per share. Comp sales fell further, falling 28%.

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Company in September CFO Gustavo Arnal committed suicide and since then his name is A class action lawsuit alleging that he and his major shareholder, GameStop Chairman Ryan Cohen, had artificially inflated the company’s value in a “pump and dump” scheme.

Also in September, the company List of 56 stores this will be closed. At the time, the company was developing a turnaround plan, which has since been revised according to the latest update.

in October, Sue Gove officially After several months of interim work and unanimous approval by the company’s board of directors, he assumed the position of CEO.

The company is seeking a debt swap to help with its liquidity problems.

BED BATH AND BEYOND WARN TO BE PROTECTED

BB&B is facing problems ‘more about company issues than retail’

While declining sales and executive changes have rocked Bed Bath & Beyond since the start of the pandemic, brick-and-mortar and online retail success suggests the problem is under the hood. (Michael M. Santiago/Getty Images/Getty Images)

In an interview with FOX Business on Monday, DA Davidson senior research analyst Michael Baker said: “Bed Bath and Beyond has endured a long and slow loss of market share as others have become more aggressive in the space over the last decade or so.”

“This includes online competitors such as Amazon and Wayfair, as well as brick-and-mortar retailers such as Target and Walmart,” he continued. Problems of Beyond. It’s more about company-specific issues than retail as a whole.”

“In 2022, eight of the 14 retail stocks beat the market, while five of the companies advanced despite the S&P 500’s 19.4% decline,” he said.

stock performance

Shares of Bed Bath & Beyond gained 24% on Monday, but are down 30% and 88% for the year.

Bradford Betz, Daniella Genovese and Lucas Manfredi contributed to this article.