Union, NJ, January 5, 2023 /PRNewswire/ — Bed Bath & Beyond Inc. (NASDAQ: BBBY ) today provided a business update and certain preliminary, unaudited estimated financial results for the three months ended November 26, 2022.
Q3 FY2022 (as of November 26, 2022), the company expects to report net sales of approximately $1.259 billion compared to $1.878 billion In the same period last year, reflecting factors such as lower customer traffic and lower inventory availability levels. SG&A expenses are expected to be approximately $583.6 million compared to approx. $698 million The same period last year was driven by the execution of a cost optimization plan to resize the company’s expense structure.The company expects a net loss of approximately $385.8 million The third quarter of fiscal 2022, including approximately $100 millioncompared to the net loss $276.4 million in the same period last year. These results, including any impairment charges, are subject to further review and possible adjustment.
Sugov“We have a clear vision for the future of our company. Today’s announcement underscores the importance of initiating a turnaround early in the third quarter and why we are strengthening our leadership team to execute every step of the way,” said Bed Bath & Beyond President and CEO. Both precisely. Our plan has two pillars: the first allows us to refocus on merchandising and inventory, operate more efficiently, and grow our digital and all-around capabilities, and the second focuses on strengthening our financial position. Transforming an organization of our size to scale will take time, and we expect to see progress each subsequent quarter.”
Mrs. Gove continued, “Despite more effective merchandise planning and improved execution, our financial performance was negatively impacted by inventory constraints as we worked with suppliers to address micro and macroeconomic challenges. Lower credit lines resulted in lower inventory levels at Showcased in the assortment that our customers expect. As a result, we have taken advantage of the liquidity gained over the holidays to immediately pursue higher inventory levels with the support of our key suppliers. We have seen trends improve when inventory levels increase.”
“Strengthening our ability to serve our customers will continue to drive our decision-making. We are resetting the fundamentals to create a stronger, more flexible infrastructure that is closely aligned with our customers’ needs and preferences. We continue to Managing our financial position and engaging with expert advisors as we consider all avenues and strategic options to achieve our short- and long-term goals. We look forward to providing an update on these fronts on our formal third-quarter earnings call next week.”
Mrs. Gove concluded: “As always, our people and partners are our top priority. We will continue to work steadfastly with our supplier community, working together to achieve our full potential. We are a team focused on the future, I am grateful for their dedication and the hard work of those who drive us forward. We will continue to steer our business dynamically to ensure that Bed Bath & Beyond, buybuy BABY and Harmon remain customers’ favorites for a long time to come preferred destination.”
Based on operating results for the third quarter of fiscal 2022, the company has determined that additional time is required to complete its quarter-end closing process, including evaluating its performance in conjunction with quarterly long-term asset impairment tests. Accordingly, the Company has filed a Delayed Filing Notice with the Securities and Exchange Commission (“SEC”) regarding its Quarterly Report on Form 10-Q.
In addition, the Company has previously commenced an exchange offer and consent solicitation for its senior unsecured notes, which were issued on January 42023. Although certain holders decided to bid their unsecured notes in the exchange offer and agreed in the consent solicitation, the conditions of the exchange offer and consent solicitation were not satisfied, and the exchange offer and consent solicitation were terminated.
Based on recurring losses and negative cash flow from operating activities for the nine months ended, the company continues to take actions and measures to improve its cash position and alleviate any potential liquidity shortfall November 26, 2022and the current cash and liquidity forecasts, the company concludes that there are significant doubts about the company’s ability to continue as a going concern.
The company continues to consider all strategic options, including restructuring or refinancing its debt, seeking additional debt or equity, reducing or delaying the company’s business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including pursuant to The following provides relief under the United States Bankruptcy Code. These measures may not be successful.
About the company
Bed Bath & Beyond Inc. and subsidiaries (the “Company”) is an omnichannel retailer that makes it easy for our customers to feel at home. The company sells a wide variety of merchandise in the home, baby, beauty and wellness markets.In addition, the firm is a partner in a joint venture in the Mexico Take the name of Bed Bath & Beyond.
The company operates the websites bedbathandbeyond.com, bedbathandbeyond.ca, buybuybaby.com, buybuybaby.ca, harmondiscount.com and facevalues.com.
preliminary financial results
The estimated results in this news release represent the company’s preliminary estimate of certain financial results for the three months ended November 26, 2022, based on currently available information.The company has not yet finalized the results for the current period and the consolidated financial statements for the three months ended November 26, 2022 Currently unavailable. The company’s actual results remain dependent on the completion of quarter-end closing procedures, including the results of the company’s impairment analysis and related tax implications, and reviews by management and the company’s board of directors, including the audit committee. In performing such procedures, the Company may identify items that require adjustments to the preliminary estimates of results presented here. As a result, the company’s actual results may differ, and potentially materially, from those stated herein. Accordingly, readers should not place undue reliance on these preliminary estimates of the company’s performance. The preliminary estimates of the company’s performance contained herein have been prepared by, and are the responsibility of, the company’s management. The Company’s independent auditors have not audited, reviewed or prepared preliminary estimates of the Company’s performance.Preliminary estimates of certain financial results provided herein should not be considered a substitute for the information the company has filed with the Securities and Exchange Commission in its quarterly report on Form 10-Q for the three months ended November 26, 2022 Once available.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “will,” “work,” variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our beliefs and expectations regarding filings on Form 10-Q, estimated reports of financial performance and the Company’s ability to execute its transformation plans. These forward-looking statements are not guarantees of future results and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond our control. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risk factors described in the company’s filings with the Securities and Exchange Commission, material delays in the company’s financial reporting, including the possibility that the company will not be able to filed its Form 10-Q within the five-day extension allowed by the rules, along with the results of the company’s impairment and tax provision analysis. The Company undertakes no obligation, and undertakes no obligation, to update or revise any forward-looking statements contained in this report, except as required by applicable law or regulation.
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