CEO Mark Tritton has taken the reins at Bed Bath & Beyond, only recently restructuring the retailer’s executive leadership, in time to report that third quarter results slipped into the red.
For the quarter, the retailer posted a net loss of $38.6 million, or 31 cents per diluted share, versus net earnings of $24.4 million, or 18 cents per diluted share, in the period a year earlier.
With one-time charges excluded, Bed Bath & Beyond reported, adjusted net loss was $46.9 million, or 38 cents per diluted share, versus adjusted net earnings of $2.7 million, or two cents per diluted share, in the year-prior quarter.
A Zacks Investment Research consensus analyst estimate called for a third quarter adjusted earnings per diluted share gain of three cents.
Comparable sales slipped 8.3% in the quarter year over year. Net sales came in at $2.76 billion versus $3.03 billion in the quarter a year before. Operating loss was $29.8 million versus an operating profit of $49.5 million in the year-previous period.
The company pointed to a holiday sales shift for much of its third quarter deterioration. The Thanksgiving holiday calendar shift in 2019 resulted in one less week of holiday sales compared to the year-past third quarter, the company maintained. Adjusting for the change, and so including Thanksgiving and Cyber Monday weeks in both periods, comparable sales for the fiscal 2019 third quarter declined 3.6%, the company asserted.
Tritton, now Bed Bath & Beyond’s president and CEO, said, “Our performance in the third quarter was unsatisfactory and underscores the imperative for change and strengthens our sense of priorities and purpose. We must respond to the challenges we face as a business, including pressured sales and profitability, and reconstruct a modern, durable model for long-term profitable growth. Fortunately, the foundation of the company’s transformation is well underway, due in large part to the direction and support of the board. We will be finalizing the details of our strategic plan over the next few months and appreciate your patience as we embark and pursue this journey to position Bed Bath & Beyond to deliver long-term, sustainable growth.”