Is your local Bed Bath & Beyond store closing?
Amid a dismal first quarter earnings report, Bed Bath & Beyond announced plans to close approximately 200 stores over the next two years as part of a cost restructuring plan. The company said the move is expected to generate annualized savings of between $250 and $350 million when one-time costs are excluded.
In its first quarter report Wednesday, Bed Bath reported an adjusted loss of $1.96 per share, exceeding a FactSet expected loss of $1.27 per share. Net sales of $1.31 marked a 49% decline from the prior year as the already struggling retailer comes to grips with temporary store closures due to the coronavirus pandemic. Though reopenings have begun and most stores are now operational, 90% of the company’s total locations were closed during the larger economic shutdown.
"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 the earnings release.
Digital sales proved to be a bright spot in the report, growing 82% in the quarter and representing two-thirds of net sales in the quarter.
Bed Bath didn’t provide guidance for 2020 “due to the continued uncertainty related to the impact of the COVID-19 pandemic.”
As of May 30, the company operated a total of 1,478 stores, including 955 Bed Bath & Beyond stores in all 50 states.
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