Bed Bath & Beyond narrows loss, posts first sales growth in 19 quarters
Bed Bath & Beyond Inc.’s efforts to reinvent itself as an “Everything Home Company” are beginning to show some positive results.
The company reported its first quarter of year-over-year revenue growth in 19 quarters, driven by a better merchandise selection and stronger brand awareness.
Net revenue rose 6.9% year over year to $248 million for the quarter ended March 31, topping analysts estimates of $240.1 million. (Net revenue excluding the impact of the company’s exit from Canada increased 9.4% year-over-year.)
“We’re seeing better engagement, stronger conversion and improvements in average order value, which tells us the customer is responding to the investment we’ve made,” chairman and CEO Marcus Lemonis said.
Bed Bath & Beyond reported a first-quarter net loss of $16 million, a $24 million improvement year over year. The loss per share was $0.24. Analysts had expected a loss of $0.28 per share. Adjusted EBITDA was ($8) million, a $5 million improvement year-over-year.
“Our first quarter results show that the work we’ve been doing to stabilize and rebuild the business is taking hold,” stated Lemonis. “We delivered real year-over-year revenue growth, something we haven’t seen meaningfully in several years, while continuing to take costs out of the business and operate more efficiently. That combination matters.”
In January, Lemonis outlined a three-part strategy to transform Bed Bath & Beyond Inc. into an “Everything Home Company.” The strategy is built on three pillars: omnichannel retail and commerce; digital, financial, insurance and blockchain services; and beyond home, which includes an AI-powered home operating system.
During the quarter, the company completed its acquisition of Kirkland’s. And earlier this month, it announced plans to acquire home good and storage products retailer The Container Store for $150 million. Most of the Container Store roughly 100 U.S. stores are expected to remain open, but will be rebranded as “The Container Store/Bed Bath & Beyond.”
In a letter to shareholders that was released with the first quarter results, Lemonis said the company has done the work “to reset the business.”
“We have demonstrated the model,” he wrote. “We are now building something significantly larger from that foundation.”
The company owns Bed Bath & Beyond, Overstock, BuyBuy Baby, Kirkland's and Kirkland's Home, as well as other related brands and websites and a blockchain asset portfolio inclusive of tZERO, GrainChain, and other assets
