Bed Bath & Beyond doubles down on technology
Bed Bath and Beyond CEO Steven Temares says the retailer is accelerating turnaround efforts after another round of disappointing quarterly results.
During the company's second quarter earnings call, Temares said the company plans to increase its investments in technology, hire a new chief information officer and the company's first chief technology officer, and establish a strategic portfolio management office.
Realigning the store's management structure — including last month's decision to cut 880 department and assistant store manager positions — is also part of the company's plans, Temares said.
"We are focused on transforming our store operating model to better meet the evolving needs of our customers in an omnichannel environment," Temares said. "By delivering operational efficiencies, we can more effectively utilize our resources and position our associates to deliver the services required to meet the changing needs and desires of our customers."
For the second quarter of fiscal 2017 ended Aug. 26, the company reported net earnings of $.67 per diluted share ($94.2 million). Net sales were approximately $2.9 billion, a decrease of approximately 1.7% from the prior year quarter. Comparable sales in the fiscal 2017 second quarter decreased by approximately 2.6%.
Bed Bath and Beyond said it expects its latest initiatives to save $150 million over the next few years, a portion of which may be reinvested in the company.
Online sales represent only 15 percent of Bed Bath and Beyond's sales, Temares added, meaning there remains room for "significant growth."
Bed Bath and Beyond currently operates 1,550 stores across the globe.