Bed Bath & Beyond is establishing key near-term priorities to accelerate transformation. While, the company’s net sales for the first quarter of fiscal 2019 were approximately $2.6 bn, a decrease of approximately 6.6 per cent compared to the prior year period. Comparable sales in the first quarter of fiscal 2019 declined around 6.6 per cent.
In the reported quarter, the company reported a net loss of ($2.91) per diluted share (($371.1) mn), which included an unfavorable impact of approximately $3.03 per diluted share related to a non-cash impairment of goodwill and other intangible assets, as well as severance and shareholder activity costs incurred during the quarter, compared with net earnings of $.32 per diluted share ($43.6 mn) for the fiscal 2018 first quarter, which included an unfavourable impact of approximately $.06 from severance costs.
“Bed Bath & Beyond is an iconic brand with tremendous opportunity and we recognize that there needs to be a fundamental change in our approach to executing the company’s business transformation. We have set four key near-term priorities that include stabilising and driving top-line growth; resetting the cost structure; reviewing and optimizing the company’s asset base, including our portfolio of retail banners; and refining our organization structure. The Board and management team are aligned on these priorities, and we are committed to completing a deep review of the business to prioritise and drive forward the most meaningful initiatives to improve performance. As we execute against these near-term priorities, our focus will remain on delighting our customers and delivering long-term value for our shareholders,” Mary A Winston, interim CEO, said.
For the fiscal 2019 full year, excluding the goodwill and other impairments, severance and shareholder activity costs, the company is modeling to be at the lower end of its previously provided ranges of $11.4 bn to $11.7 bn for net sales and $2.11 to $2.20 for net earnings per diluted share.