Bed Bath & Beyond Inc. (NASDAQ: BBBY) shares were crushed on Thursday after the company reported its most recent quarterly results. Analysts were calling for a net loss of $1.21 per share and $1.35 billion in revenue, but the posted net loss was $1.96 per share, on $1.31 billion in revenue. The same period of last year reportedly had $0.12 per share in earnings and $2.57 billion in revenue.
The company’s fiscal first quarter spanned the most critical months of the COVID-19 pandemic, which played into overall sales dropping by 49%. Much of this decline was due to temporary store closures and margin pressure from the substantial channel shift to digital.
Management noted that an important focus during the first quarter was to increase liquidity and optimize costs. The company had a fiscal 2019 year-end cash and investments balance of approximately $1.4 billion, and it ended the first quarter with $1.2 billion in cash and investments.
Prior to the end of the quarter, the company announced a new $850 million three-year secured asset-based revolving credit facility, which provides substantial additional liquidity if needed. It expires in June 2023 and replaces the company’s unsecured revolving credit facility that allowed for borrowings up to $250 million.
The company declined to provide guidance due to the continued uncertainty of the ongoing pandemic. However, analysts are calling for a net loss of $0.43 per share and $2.21 billion in revenue for the second quarter.
Bed Bath & Beyond stock traded down about 22% to $8.11 on Thursday, in a 52-week range of $3.43 to $17.79. The consensus price target is $8.19.
24/7 Wall St.Are You Ahead, or Behind on Retirement? (sponsor)
If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention.
Finding a financial advisor who puts your interest first can be the difference between a rich retirement and barely getting by, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors that serve your area in minutes. Each advisor has been carefully vetted, and must act in your best interests. Start your search now.
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.