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Bed Bath & Beyond Inc BBBY shares are plunging Thursday morning after the company provided a business update including preliminary estimated earnings results.
What To Know: Bed Bath & Beyond expects third-quarter revenue to come in around $1.259 billion, which would be down from $1.878 billion year-over-year. The home furnishings retailer said its softer top-line results are being driven by lower customer traffic and reduced levels of inventory availability, among other factors.
Bed Bath & Beyond anticipates a quarterly net loss of approximately $385.8 million, which includes impairment charges of approximately $100 million. The company reported a net loss of $276.4 million in the comparable quarter.
SG&A expenses are expected to be approximately $583.6 million compared to approximately $698.0 million in the prior year’s quarter.
“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 Sue Gove, president and CEO of Bed Bath & Beyond.
“We continue to manage our financial position amidst a changing landscape and work with expert advisors as we consider all paths and strategic alternatives to accomplish our short- and long-term goals,” Gove added.
As part of the release, the Bed Bath & Beyond stated, “While the Company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended November 26, 2022, as well as current cash and liquidity projections, the Company has concluded that there is substantial doubt about the Company’s ability to continue as a going concern.”
Bed Bath & Beyond was scheduled to report on Jan. 10, but the company filed a Notification of Late Filing with the SEC for its upcoming fiscal third-quarter report.
BBBY Price Action: Bed Bath & Beyond has a 52-week high of $30.06 and a 52-week low of $2.25.
The stock was down 18.3% at $1.97 at time of publication, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.
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Image and article originally from www.benzinga.com. Read the original article here.