By Michelle Chapman 

Losses widened at Bed Bath & Beyond as a tangled global supply chain continued to squeeze sales and the home goods chain lowered expectations for its final fiscal quarter, and also its full-year revenue.

At the opening bell, however, shares of the company that have been grouped with other meme stocks of beaten down companies, soared more than 10%.

The Union, New Jersey, company lost $276.4 million, or $2.78 per share, for the three months ended Nov. 27. The per-share losses adjusted for restructuring costs and other items was 25 cents, much worse than the break-even quarter industry analysts had projected, according to Zacks Investment Research.

The company last year lost $75 million in the quarter, or 61 cents per share.

Revenue was $1.88 billion, down sharply from $2.62 billion and also short of the $1.96 billion that Wall Street was looking for.

Bed Bath & Beyond said that it struggled to get everything on shelves that shoppers wanted amid ongoing issues tied to backups in the supply chain as the U.S. economy emerges from the worst of the pandemic.

Those constraints resulted in an estimated $100 million impact on the quarter and an even higher impact in December, said CEO Mark Tritton in a prepared statement.

Comparable sales, which includes stores and digital, declined 7% in the third quarter.

For the current quarter ending in February, Bed Bath & Beyond said it now expects revenue in the range of $2.1 billion. Analysts surveyed by Zacks had expected revenue of $2.28 billion.

The company now anticipates full-year revenue of $7.9 billion. Its prior outlook was for revenue between $8.1 billion and $8.3 billion. Analysts polled by FactSet predict revenue of $8.14 billion.

Before the opening bell Thursday, shares in Bed Bath & Beyond Inc. tumbled 9% after quarterly numbers were released, but within minutes reversed course and took off.

This year, large groups of individual investors bought up shares of companies that have struggled, or meme stocks, like GameStop and AMC Entertainment, causing institutional investors like hedge funds to lose billions.

Bed Bath & Beyond, while not gaining the same level of attention as those other meme stocks, spiked nonetheless. Shares that could be had for less than $20 in early January, more than doubled in price by the end of the month.

It was not clear what led to the reversal in the price of shares early Thursday.

Share:
More In Business
Michigan Judge Sentences Walmart Shoplifters to Wash Parking Lot Cars
A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
State Department Halts Plan to buy $400M of Armored Tesla Vehicles
The State Department had been in talks with Elon Musk’s Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration after reports emerged about a potential $400 million purchase. A State Department spokesperson said the electric car company owned by Musk was the only one that expressed interest back in May 2024. The deal with Tesla was only in its planning phases but it was forecast to be the largest contract of the year. It shows how some of his wealth has come and was still expected to come from taxpayers.
Goodyear Blimp at 100: ‘Floating Piece of Americana’ Still Thriving
At 100 years old, the Goodyear Blimp is an ageless star in the sky. The 246-foot-long airship will be in the background of the Daytona 500 — flying roughly 1,500 feet above Daytona International Speedway, actually — to celebrate its greatest anniversary tour. Even though remote camera technologies are improving regularly and changing the landscape of aerial footage, the blimp continues to carve out a niche. At Daytona, with the usual 40-car field racing around a 2½-mile superspeedway, views from the blimp aptly provide the scope of the event.
Is U.S. Restaurants’ Breakfast Boom Contributing to High Egg Prices?
It’s a chicken-and-egg problem: Restaurants are struggling with record-high U.S. egg prices, but their omelets, scrambles and huevos rancheros may be part of the problem. Breakfast is booming at U.S. eateries. First Watch, a restaurant chain that serves breakfast, brunch and lunch, nearly quadrupled its locations over the past decade to 570. Fast-food chains like Starbucks and Wendy's added more egg-filled breakfast items. In normal times, egg producers could meet the demand. But a bird flu outbreak that has forced them to slaughter their flocks is making supplies scarcer and pushing up prices. Some restaurants like Waffle House have added a surcharge to offset their costs.
Load More