Bed Bath & Beyond expects to report around 1.259 billion U.S. dollars of net sales for the quarter, lower than 1.878 billion dollars in the same period of the previous year, the company said in a business update.
The sharp shrinkage of business volume reflects lower customer traffic and reduced levels of inventory availability, among other factors, the company said.
Meanwhile, Bed Bath & Beyond anticipated a net loss of about 385.8 million dollars in the quarter, up from a net loss of 366.1 million dollars in the previous quarter and a net loss of 276.4 million dollars in the same period of the previous year.
Bed Bath & Beyond is set to report its quarterly operating results on Jan. 10, and the preliminary results revealed on Thursday are subject to changes.
Bed Bath & Beyond suffered heavy losses in the last few quarters and has resorted to closures of some stores to reduce losses and make a turnaround.
"While the company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended Nov. 26, 2022, as well as current cash and liquidity projections, the company has concluded that there is substantial doubt about the company's ability to continue as a going concern," said Bed Bath & Beyond.
The company said it continued to consider all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the its business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code.
These measures, however, "may not be successful," it warned.
The stock price of Bed Bath & Beyond plunged 29.88 percent and closed at 1.69 dollars per share on Thursday.
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