Bed Bath & Beyond (NASDAQ:BBBY) on Wednesday reported a double-digit decline in fiscal fourth-quarter sales, as ongoing store closures and divestments that are part of a bigger turnaround plan continue to weigh on results.
The big-box retailer reaffirmed a prior sales outlook for the coming fiscal year, noting that positive sales momentum has carried into the current quarter. Many Americans have turned to the company’s stores and website during the COVID pandemic to buy cleaning supplies, kitchen appliances, bedding and other items for their homes.
But CEO Mark Tritton says results in its first quarter, however, are going to be messy. In the year-ago period, all of Bed Bath & Beyond’s stores were shut due to the health crisis, and it was totally reliant on its digital business to fuel sales. That’s unlike some retailers, notably Walmart (NYSE:WMT) and Target (NYSE:TGT), that have been able to keep their stores open throughout the pandemic.
Bed Bath & Beyond’s net income during the period grew to $9.1 million, or eight cents per share, compared with a loss of $65.4 million, or 53 cents per share, a year earlier. Excluding one-time adjustments, the company earned 40 cents per share, better than the 31 cents expected by analysts.
Net sales fell about 16% to $2.62 billion from $3.11 billion a year earlier. That was slightly short of the $2.63 billion that analysts were anticipating.
BBBY shares retreated $3.77, or 13.5%, to $24.20
