Parent of Bed, Bath & Beyond narrows loss; finalizes Buy Buy Baby acquisition
Beyond Inc. cut its loss by half during the fourth quarter even as its sales continued to fall.
The company, owner of Bed Bath & Beyond, Overstock and Zulily, also announced that it completed its $5 million purchase of the global rights of the Buy Buy Baby brand. The deal includes certain assets, databases, domains, intellectual property, vendor relationships and content related to the baby goods brand.
“We believe bringing these two iconic brands, Bed Bath & Beyond and Buy Buy Baby, back together significantly strengthens our customer proposition in key life stage shopping moments,” said Marcus Lemonis, executive chairman, Beyond.
Fourth Quarter
Beyond reported a net loss of $81 million for the quarter ended Dec. 31, down significantly from a loss of $161 million in the year-ago period. The adjusted loss came to $0.91 per share, more than the $0.73 loss analysts were expecting.
Operating loss was $43 million, down from a loss of $65 million.
Net revenue fell 21.1% to $303 million, missing estimates of $331.08 million. Orders delivered were down 34% to 1.7 million. Active customers fell 4% to 5.4 million.
“We are exceeding our previously announced targets of margin improvement and fixed cost reductions, improved site experience, and the elimination of poor performing SKUs/vendors, which are all leading to our primary goal of making money,” said Lemonis.
Despite missing expectations, Lemonis said the company is excited by the progress it have made since Nov. 1 and is further encouraged by “the sequential improvements that have continued through February.”
“While there is still much work to do, we will continue to make the necessary difficult decisions, leverage technology innovation and utilize our resources and partnerships to create a solid foundation that we believe will deliver profitability and growth,” he said.
For the full fiscal year, net revenue decreased 10.6% to $1.4 billion. Operating loss widened to $191 million compared to a loss of $118 million in the comparable quarter. Net loss fell to $259 million from $308 million for the previous year.
