As it continues to focus on its initiatives to revamp operations, Bed Bath & Beyond earnings fell sharply in the second quarter with net sales coming in flat and comparable sales slipping.
Earnings were $48.6 million, or 36 cents per diluted share, in the second quarter ended September 1 versus $94.2 million, or 67 cents per diluted share, in the period a year prior.
Comparable sales decreased 0.6% year over year, with store comps down in the mid single digits but online comps up, the company reported.
Net sales were $2.94 billion matching the quarter a year earlier. Operating profit was $78.9 million compared to $168.8 million in the year-previous second quarter.
In a conference call, Steven Temares, Bed, Bath & Beyond CEO, said the company will continue to pursue a strategy to reconstitute the operation including store-level, omnichannel and business functions. Initiatives under that strategy range from enhancement of back-to-college programs to upgrading of e-commerce fulfillment capabilities to loyalty program refinement. Temares emphasized that the strategy would hit sales and profits this year and through 2019 but would lead to gains in 2020. Bed, Bath & Beyond, he said, remains focused on long-term profitability even if that means short-term sacrifices.
“There are no shortcuts to long-term success,” he said.