Following an initial warning that the company had been weighing bankruptcy, Bed Bath & Beyond published its financial statement for Q3 2022, with a loss in net sales starkly prominent among the results.
The lifestyle retailer said its net sales of 1.259 billion dollars declined 33 percent, citing its lower in-stock position and decrease in customer traffic among the causes.
Its GAAP Gross Margin was adjusted to 22.8 percent from 22.1 percent, as it continues its clearance activity in line with the discontinuation of its Owned Brands merchandise and increased promotional activity.
The company noted it was on track to complete around 150 store closures for the end of fiscal year 2022, with further incremental cost reductions of approximately 80 to 100 million dollars across its corporate spending.
Ultimately, its net loss for the quarter included 100.7 million dollars of non-cash impairment charges, while its operating cash flow sat at 307.6 million dollars and its liquidity at 500 million dollars.
“Our plan has two anchors…”
The report comes after Bed Bath & Beyond issued a troubling business update last week, in which it said it would need more time to complete its quarter-end close procedures and said it would be taking steps to improve cash position.
It noted that there was “substantial doubt” about the company’s ability to continue, with it set to consider all strategic alternatives, including restructuring or refinancing its debt, seeking additional debt, reducing business activities, selling assets or other strategic transactions that could include a bankruptcy filing.
In the regulatory filing, 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 organisation of our size and scale requires time, and we anticipate that each coming quarter will build on our progress."