Bed Bath and Beyond reported a fourth-quarter loss, resulting in a negative surprise for analysts. The home goods retail company also mentioned challenges slowing consumer demand.
The company incurred a loss of -92 cents, vs. profit of +3 cents expected by analysts polled by Refinitiv.
Revenue plunged -22% from the year-ago quarter to $2.05 billion, missing expectations of $2.07 billion.
Same-store sales fell -12% from the year-ago period. Same-store sales dropped -15% for the Bed Bath & Beyond banner and rose by low single digits for the BuyBuy Baby banner.
Digital sales decreased by -18% year-over-year.
CEO Mark Tritton mentioned that company plans to open 20 to 25 new BuyBuy Baby stores and remodel 130 to 150 Bed Bath stores this year. With the additional remodels of Bed Bath banner stores stores, the company would have remodeled roughly a quarter of the stores by the end of the fiscal year, according to Tritton.
However, Tritton did acknowledged in a CNBC interview that there are challenges to in demand, since households no longer get extra dollars from the government such as child tax credits. He is optimistic about the long-term prospects though.