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Bed Bath & Beyond (BBBY) Q1 2022 earnings

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A pedestrian walks by a Mattress Bathtub and Past retailer in San Francisco, California.

Justin Sullivan | Getty Photographs

Mattress Bathtub & Past is changing CEO Mark Tritton in a management shakeup after the retailer struggled by way of one other quarter of declining gross sales and posted a steeper loss.

The corporate mentioned Wednesday that Sue Gove, an impartial director on the board, will step in as interim CEO. The change comes after a multi-year push to revive Mattress Bathtub’s model, develop on-line gross sales and win again prospects. Tritton, a Goal veteran, had led the trouble after becoming a member of in 2019.

Shares had been down about 20% in morning buying and selling.

However together with firm challenges, Mattress Bathtub is going through a more durable financial backdrop.

“I step into this position keenly conscious of the macro-economic setting,” Gove mentioned in a press release, citing steep inflation and shifting shopping for habits.

Nonetheless, Gove mentioned the corporate wants to enhance its efficiency and that its first quarter outcomes are “less than our expectations.” Along with working to repair provide chain issues, cut back prices and enhance its stability sheet, Gove mentioned Mattress Bathtub & Past will embrace a “again to fundamentals mantra” to win again prospects.

Mattress Bathtub & Past mentioned it expects same-store gross sales to recuperate within the second half of the fiscal 12 months, however didn’t present a selected forecast.

The retailer additionally named a brand new chief merchandising officer. Mara Sirhal, who most just lately served as normal merchandise supervisor of well being, magnificence and consumables, will exchange Joe Hartsig, who’s leaving the corporate.

Here is how the retailer did within the three-month interval ended Could 28 in contrast with what analysts had been anticipating, based mostly on Refinitiv information:

  • Loss per share: $2.83 vs. $1.39 anticipated
  • Income: $1.46 billion vs. $1.51 billion anticipated

The corporate’s web loss widened to $358 million, or $4.49 per share, from $51 million, or 48 cents per share, a 12 months earlier. On an adjusted foundation, the corporate’s web loss was $2.83 per share. That was greater than the $1.39 that analysts anticipated, in keeping with Refinitiv.

Gross sales fell to $1.46 billion from $1.95 billion a 12 months earlier. Wall Avenue anticipated gross sales of $1.51 billion.

Similar-store gross sales, a key retail metric, declined 24% within the quarter in contrast with a 12 months in the past, worse than the 20.1% drop that analysts anticipated, in keeping with StreetAccount. On-line gross sales fell by 21% 12 months over 12 months. The figures embrace a 27% drop for its Mattress Bathtub & Past banner and a mid single-digits decline for the Buybuy Child banner.

A management shakeup

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