Bed Bath & Beyond shares sink on sales warning
Bed Bath & Beyond Inc. said same-store sales declined in December and January, as the company faces inventory challenges and issues attracting customers to its stores.
The home-goods retailer said same-store sales fell 5.4% for the first two months of its fiscal fourth quarter. Bed Bath & Beyond attributed the decline to lower store foot traffic, inventory management problems and higher markdowns. The company also cited the lack of products on store shelves, as inventory on an assortment of items was either low or out-of-stock during the period.
The preliminary results on Tuesday sent shares tumbling 25% in after-hours trading to $11.10.
"We are experiencing short-term pain in our efforts to stabilize the business, including the pressures of store traffic trends coupled with our own executional challenges," Chief Executive Mark Tritton said in a statement. He added that the company will need to "remaster the fundamentals of merchandising, pricing and promotion, and focus on our digital channels as part of our go-forward strategy."
Mr. Tritton, who joined from rival Target Corp., has been chief executive since late last year. He took the reins after three activist investors unseated Bed Bath & Beyond’s top officials, including its founders.
Mr. Tritton said he has been trying to modernize the business, but those changes will take time to show results.
While the company drew less foot traffic in the quarter, same-store sales from its e-commerce channel jumped 20% in the two-month period.
The company is slated to report results for the full quarter on April 15.
Write to Kimberly Chin at [email protected]
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