Bed, Bath & Beyond parent ‘assessing’ portfolio as loss widens
Beyond, Inc. is reviewing its portfolio after a disappointing fourth quarter.
The owner of online retailers Bed Bath & Beyond and Overstock, which rebranded itself from Overstock.com to Beyond in November, reported a loss of $161 million, or $3.55 a share, for the quarter ended Dec. 31, compared with a loss of $15.5 million, or $0.34 a share, in the year-ago period. Adjusted losses came to $1.22 a share. Analysts had forecast a loss of $0.83 a share.
Revenue declined 5%, to $384.5 million, topping the $346 million analysts had expected.
The company said it is “dissatisfied” with its quarterly results and has taken steps to grow revenue, improve margins and reduce its fixed costs,
“In December, we announced $25 million of annualized cost reductions,” said chief financial and administrative officer Adrianne Lee. “Since that time, we have increased our target to $45 million of annualized expense reduction, freeing up capital to exclusively invest in growth.”
In a statement, executive chairman Marcus Lemonis noted that active customers returned to year-over-year growth for the first time in three years, with more than 700,000 customers added to its customer file.
“As we review our assets and investments, we continue to be optimistic about the value of a few of those investments,” Lemonis said. “As part of that review, we are assessing options related to the portfolio to ensure maximum return for our shareholders.
The company’s goal is to achieve $2 billion of revenue in 2024, and a $3 billion revenue run rate by the end of 2025.
Beyond released its results the day after it named Chandra Holt as CEO of Bed Bath & Beyond and its related brands and Dave Nielsen as CEO of Overstock. Most recently, Holt served as CEO and president of Conn’s HomePlus and
“I joined the company because I’m passionate about Bed Bath & Beyond and am driven to reestablish its category dominance,” said Holt. “We have significant opportunities ahead of us with our robust portfolio of brands. It is my goal to have Bed Bath & Beyond be a leader in unified commerce, win on home-related assortments, and provide unprecedented value for our customers.
Nielsen joined the company (as Overstock) in 2009 and has held several executive positions since that time.
“While we spent the back half of the year launching Bed Bath & Beyond, we’ve simultaneously laid the groundwork to reignite Overstock by the end of the first quarter,” he said. We believe the combination of these two anchor brands will contribute to achieving our revenue goals.”