Bed Bath and Beyond still aims for turnaround
The negative trends affecting some retailers were evident in Bed, Bath and Beyond's fiscal first quarter report.
The specialty retailer's latest quarterly results for the period ended June 27 showed declining sales and profits as the company continues to struggle to attract traffic to its stores and to its website.
In a conference call analysts, executives said that the results broadly met their expectations. "The main takeaway today is that we remain on track for fiscal 2018, as well as [for] our three-year financial goals," CFO Robyn D'Elia said. Management also highlighted a few strategic initiatives that it hopes will combine to arrest its sales slide this year. These include shifting resources toward the online segment and targeting more-attractive physical retailing niches like baby products and decorative furnishings.
For the first quarter, the company reported net sales were approximately $2.8 billion, an increase of approximately 0.4% from the prior year quarter. Same store sales decreased by approximately 0.6%, compared to expectations of positive 0.2% growth. Revenue grew marginally to $2.8 billion. The company’s gross margin declined by approximately 150 basis points (bps), from 36.5% in Q1 2017 to 35% in Q1 2018.
In its conference call, the company also announced several key personnel moves.
Gene Castagna has been appointed President and Chief Operating Officer and Sue Lattmann is the company's new Chief Administrative Officer.
Chief Merchandising Officer Art Stark has left the company; succeeding him is Todd Johnson, who joined BBB in 1997, and has served in several key leadership roles, including most recently as President and Chief Merchandising Officer for Christmas Tree Shops.
Robyn D'Elia was recently promoted to Chief Financial Officer and Treasurer. She has been part of the BBB management team since 1996.
Bed Bath & Beyond Inc. operates under the names Bed Bath & Beyond, Christmas Tree Shops, Christmas Tree Shops andThat! or andThat!, Harmon, Harmon Face Values or Face Values, buybuy BABY and World Market, Cost Plus World Market or Cost Plus.