Bed Bath and Beyond’s day of reckoning

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Bed Bath & Beyond shareholders will be closely watching Tuesday morning’s earnings report after a series of financial setbacks that could spell bankruptcy for the company. The domestic goods retailer is due to report quarterly results at 8:15 a.m. ET on Tuesday.

Last week, Bed bath & Beyond delayed reporting its third-quarter financial results, saying it determined it needed more time to complete closing procedures at the end of the quarter. These procedures include quarterly non-current asset impairment testing and evaluation of its results.

Bed Bath & Beyond was among the retailers that initially benefited from the COVID-19 outbreak as lockdown and work from home directives forced Americans to shelter in place. As pandemic restrictions eased, so did sales. In response, the company changed its strategies, prompting a revolving door of executives amid store closings and rumors of imminent bankruptcy.

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In June, the company parted ways with former Target CEO Mark Tritton in the captain’s chair for just three years after back-to-back quarters of declining sales.

Tritton led the company’s transformational strategy repair shopsis closed underperforming stores and presenting a A private label line called Owned Brands. However, the efforts were not enough to turn around the company’s struggling business.

Into First quarter of 2022, Bed Bath & Beyond’s net loss widened to $358 million, or $4.49 per share, from $51 million, or 48 cents per share, a year earlier. Total comparable sales for the quarter were down 23% year over year.

In the next quarter, the net loss widened again to $366 million, or $4.59 per share. Comp sales fell further, falling 28%.

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In September, the company’s CFO Gustavo Arnal committed suicide and has since been named in a class-action lawsuit alleging that he and major shareholder Ryan Cohen, the chairman of GameStop, artificially inflated the company’s value in a “pump and dump” scheme.

Also in September, the company List of 56 stores this will be closed. At the time, the company was preparing a turnaround plan based on the latest update, which has since been put down.

In October, Sue Gove officially took over as chief executive after several months in the interim role and was unanimously approved by the company’s board of directors.

The company is seeking a debt swap to help with its liquidity problems.

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BB&B is facing problems ‘more about company issues than retail’

While declining sales and executive changes have rocked Bed Bath & Beyond since the start of the pandemic, brick-and-mortar and online retail success suggests the problem is under the hood. (Michael M. Santiago/Getty Images/Getty Images)

In an interview with FOX Business on Monday, Michael Baker, senior research analyst at DA Davidson, said: “Bed Bath and Beyond has endured a long, slow loss of market share as others have become more aggressive in the space over the past decade or so.”

“This includes online competitors such as Amazon and Wayfair, as well as brick-and-mortar retailers such as Target and Walmart,” he continued. Problems of Beyond. It’s more about company-specific issues than retail as a whole.”

“In 2022, eight of the 14 retail stocks beat the market, while five of the companies advanced despite the S&P 500’s 19.4% decline,” he said.

Stock performance

Shares of Bed Bath & Beyond gained 24% on Monday, but are down 30% and 88% for the year.

Bradford Betz, Daniella Genovese and Lucas Manfredi contributed to this article.