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Bed Bath & Beyond Posts Wider-Than-Forecast Q3 Loss

Bed Bath & Beyond reported a wider-than-expected loss, with sales pressured by inventory shortfalls and supply-chain disruptions.
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Bed Bath & Beyond  (BBBY) - Get Bed Bath & Beyond Inc. Report reported a wider-than-expected fiscal-third-quarter loss, with sales pressured by inventory shortfalls and supply-chain disruptions.

For the quarter ended Nov. 27, the Union, N.J., home-goods retail chain reported a net loss of $2.78 a share, compared with a loss of 61 cents a share in the year-earlier quarter.

Revenue dropped 28% to $1.88 billion from $2.62 billion.

A survey of analysts by FactSet produced consensus estimates of a loss of 2 cents a share on revenue of $1.95 billion.

Comparable-store sales declined 7% from a year earlier and 4% from the fiscal 2019 third quarter.

Shares outstanding fell 19% to 99.6 million from 122.9 million.

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'Supply-Chain Stresses'

"[Overall] sales were pressured despite customer demand, due to the lack of availability with replenishment inventory and supply-chain stresses that had an estimated $100 million, or mid-single-digit [percent], impact on the quarter and an even higher impact in December," CEO Mark Tritton said in a statement.

He added: "In response to a sharp increase in inflation and pervasive freight and supply-chain headwinds," Bed Bath put in place "market-driven pricing, promotion optimization and product mix plans."

With those efforts, adjusted gross margin came in "significantly" wider than the company planned "...and above 2020 and 2019, a key financial barometer of our three-year transformation strategy." Fiscal Q3 was also the third quarter of that multiyear turnaround effort.

For the fiscal fourth quarter, Bed Bath & Beyond expects adjusted earnings per share to range from break-even to 15 cents a share. It is estimating sales of $2.1 billion.

FactSet's survey is estimating adjusted fourth-quarter earnings of 70 cents a share on revenue of $2.25 billion.

USA Today on Wednesday reported that Bed Bath & Beyond would be closing 37 stores in 19 states, most of them over the next two months.