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
Gas Prices Rise Nationwide to Near $5 a Gallon
Fuel and oil prices have risen almost 17 percent since May, making the national gas prices reach nearly $5 a gallon. Andrew Lipow from consulting firm Lipow Oil Associates joined Cheddar News to discuss the future of gas prices. "The biggest issue on the oil market is really events that are beyond our control, which is what is happening over in Europe," he said, regarding the ongoing Russia Ukraine war. Lipow also said he predicted gas prices to hit $5.05 and that he's focused on the Biden administration's overtures in repairing a relationship with Saudi Arabia.
Stock of the Week: Target
Target made some headlines this week as the retailer slashed its prices due to excess inventory. Cheddar News anchors Kristen Scholer and Ken Buffa break down Target as the Stock of the Week.
Tesla Files Proposal a 3-for-1 Stock Split
The electric vehicle maker filed a proposal for a three-for-one stock split, increasing the accessibility of shares for investors for a stock trading at around $700 a share. The move comes not long after tech giant Amazon announced a 20-for-one split. The number of authorized shares rises from two billion to six billion. It was also revealed that board member Larry Ellison does not intend to stand for reelection as it pertains to Tesla.
How Pride Portraits Uplifts the LGBTQ+ Community
'Pride Portraits' is a trans-led organization aiming to visually represent the LGBTQ+ community one photograph at a time. Eden Rose Torres, founder and president of Pride Portraits, joins Cheddar News to discuss its participants and the issues the LGBTQ+ community still faces.
Biden Proposes New Rule to Add 500,000 EV Chargers Nationwide
President Biden proposed a new rule that would add 500,000 chargers for electric vehicles nationwide. The proposal comes amid the rapid shift to EVs with dozens of automakers announcing plans for all-electric fleets within the next decade. But with the new surge will the U.S. have the proper infrastructure to keep up? Scott Painter, founder and CEO of Autonomy.com joined Cheddar's Opening Bell to discuss. "I really think the idea of standardization is a big deal. Standardization certainly makes it much better for everybody to be able to get a charge when they need one," he said.
Load More