Bed Bath & Beyond reports a 25% drop in net sales in the first quarter of 2022

US homewares retailer Bed Bath & Beyond has reported net sales of $1.46 billion in the first quarter of fiscal 2022 (FY22), down 25% from a year ago.

In the three months to May 28, comparable sales in the Company’s stores and online channel were down 24% and 21%, respectively, from the corresponding period of FY21.

Comparable sales for the Bed Bath & Beyond banner fell 27%, while those for its buybuy BABY business fell to mid-digits.

Bed Bath & Beyond’s gross margin also decreased by 850 basis points (bps) to 23.9% from 32.4% in the first quarter of 2021, while its adjusted gross margin also decreased by 33.7% to 23 .8% YoY.

The retailer posted a net loss of $358 million in the first quarter of 2022, compared to $51 million a year earlier.

Its net loss per diluted share was $4.49 in the first quarter of 2022, compared to a loss of $0.48 per diluted share in the prior year period.

In a separate development, Bed Bath & Beyond has appointed Sue Gove, an independent director on the company’s board and chair of the board’s strategy committee, as interim chief executive.

Sue Gove said: “I come into this role fully aware of the macro-economic environment.

“During the quarter, there was a sharp shift in customer sentiment and since then the pressures have intensified significantly.

“This includes high inflation and fluctuations in buying patterns, causing significant disruption to our sales and inventory which we will actively work to resolve.

“The simple reality is that our first quarter results did not meet our expectations, nor did they reflect the true potential of the business.”

Earlier this year, Bed Bath & Beyond announced plans to close 37 locations in 19 US states by the end of the year.

Ann J. Cox