Bed, Bath & Beyond Stock Off on Sales Drop, Store Closings

Bed, Bath & Beyond missed Wall Street's earnings expectations, and the housewares retailer said it would shutter 200 stores.
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Bed Bath & Beyond  (BBBY) - Get Report shares on Thursday tumbled after the housewares retailer missed Wall Street's first-quarter expectations and said it would shutter 200 stores as a result of the coronavirus pandemic.

Shares of the Union, N.J., at last check were off 24% to $7.89.

"We're going to come into the post-covid period as a very fresh company," Chief Executive Mark Tritton, who took over in November, said during a conference call with analysts, according to a transcript.

That effort includes Buy Online-Pick Up in Store "and curbside impact," as well as "a whole new set of customers and a new way of working in an omnichannel way. So it's an exciting time for us."

In an interview with CNBC, Tritton said the company's previously announced review of its noncore assets is a "work in progress." 

But added that he sees its Buy Buy Baby chain as a part of the company's core plans moving forward.

Tritton said "we've seen great recognition of our brand" during the outbreak "and truly home is very important to our customers at the moment."

On Wednesday, Bed, Bath & Beyond said it planned to close 200 stores over the next two years.

Sales for the fiscal first quarter ended May 30 fell 49% due to the effects of the coronavirus pandemic.

The retailer posted an adjusted loss of $1.96 a share on revenue of $1.31 billion. In the year-earlier period it reported a loss of $2.91 a share on revenue of $2.57 billion.

The company had been expected to report a loss of $1.27 a share on revenue of $1.39 billion, based on a survey of analysts by FactSet.

Bed Bath & Beyond said that net sales from digital channels increased 82%, making up nearly two-thirds of the company's first-quarter total net sales. 

In comparison, net sales from stores, 90% of which were closed during the majority of the quarter, plummeted about 77%. 

The company began reopening stores in late May and early June.