Earnings Results: Bed Bath stock plunges after warning that it may need to declare bankruptcy

by | Jan 5, 2023 | Stock Market

Bed Bath & Beyond Inc. said Thursday that it has “substantial doubt” about its “ability to continue as a going concern,” as the company also disclosed that it expects to record lower sales for the latest quarter than analysts were anticipating. Shares were down more than 17% in premarket trading.

Bed Bath
BBBY,
+4.33%
expects to report net sales of about $1.259 billion for the fiscal third quarter, compared with $1.878 billion in the year-before quarter. The lower sales reflect reduced customer traffic and inventory availability. Analysts tracked by FactSet were anticipating $1.406 billion in sales. The company also anticipates that it will report a $385.8 million net loss, compared with a $276.4 million loss a year prior. The latest loss figure reflects about $100.0 million in impairment charges. Chief Executive Sue Gove said in a release that the company was impacted by inventory constraints in the quarter but that trends have improved since then. “Reduced credit limits resulted in lower levels of in-stock presentation within the assortments that our customers expect,” she said. “Consequently, we have already leveraged the liquidity gained from the holiday season to immediately pursue higher in-stock levels with support from our key vendors.” Bed Bath needs extra t …

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