Bed Bath & Beyond, Inc. (BBBY) - Get Free Report said it plans to close 200 of its stores over the next two years and said its first-quarter sales fell 49% due to the effects of the COVID-19 pandemic.
The retailer posted an adjusted loss of $1.96 a share on revenue of $1.31 billion. In the year-ago period it reported a loss of $2.91 a share on revenue of $2.57 billion.
The company had been expected to lose $1.27 a share on revenue of $1.39 billion, based on a survey of analysts by FactSet.
"The impact of the COVID-19 situation was felt across our business during our fiscal first quarter, including loss of sales due to temporary store closures and margin pressure from the substantial channel shift to digital,” CEO Mark Tritton said in a statement.
The company said it will close “approximately 200 mostly Bed Bath & Beyond stores over the next two years and focus on other SG&A expense reductions.” It expects the moves to generate “future annualized savings of between $250 and $350 million, excluding related one-time costs.”
The company said it closed 21 Bed Bath & Beyond stores during the first quarter, and that as of May 30, it had a total of 1,478 stores, including 955 Bed Bath & Beyond stores in all 50 states.
Bed Bath and Beyond said it won’t provide financial guidance for 2020 “due to the continued uncertainty related to the impact of the COVID-19 pandemic.”
Share of Bed Bath & Beyond fell 76 cents, of 7.3%, to $9.65 in after-hours action.