Bed Bath & Beyond (NASDAQ:BBBY) shares tanked early trading Thursday as the company said it saw a steep drop-off in traffic in August, dealing a blow to its fiscal second-quarter results.
Comparable 3 Sales declined of (1)% versus Q2 2020 primarily driven by slower than expected traffic trends in August across stores and digital
Bed Bath & Beyond banner Comparable Sales decline of (4)%; buybuy BABY banner growth of high-teens percentage
Net loss per diluted share of $0.72 includes approximately $0.76 from special items. Excluding special items, adjusted net earnings per diluted share was $0.04 . Special items reflect charges such as non-cash impairments related to certain store-level assets and tradenames, loss on sale of businesses, loss on the extinguishment of debt, charges recorded in connection with the Company's restructuring and transformation initiatives, and the income tax impact of these items.
Restructuring and transformation initiative charges include accelerated transitional markdowns related primarily to the planned assortment transition to Owned Brands as well as costs associated with the Company's transformation initiatives, including store closures related to the Company's fleet optimization, and the income tax impact of these items.
The Company delivered positive operating cash flow of $75 million.
The big-box retailer is also dealing with industry-wide supply chain complications, which Chief Executive Mark Tritton said have been “pervasive.”
And the company saw steeper inflation costs escalating over the summer months, especially toward the end of its second quarter in August,
Tritton said. This ate into sales and profits, he said.
BBBY shares chucked $5.54, or 25%, to $16.66
