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.
At the age of 65, Judy Katz, who ran her own public relations firm for years, was looking for a change. After retirement, she started a brand-new business as an author and ghostwriter of books. Judy Katz joins Jamie Hopkins to discuss finding a new beginning as a ghostwriter and living life to the fullest post-retirement.
Catching you up with today's market check with the mortgage demand plummeting to a 22-year low, Walmart heir Rob Walton getting set to buy the Denver Broncos for $4.56 billion, and talks continuing over Jetblue’s attempted purchase of Spirit headlines.
Meta announced its plans to join the Cannes Lions International Festival of Creativity. This is leaving businesses and customers wondering what the tech giant has in store for the event. Nicola Mendelsohn, the vice president of the global business group at Meta, joined Cheddar News to preview what the tech giant will discuss at this year's festival. "We're going to be showcasing more about reels. We're going to be talking about our commerce solutions, are messaging solutions, and of course, the method of us speaking of new ways to kind of connect with customers," she said.
On today's episode of On The Job: Cheddar gets a look at how the salon and beauty industry has pivoted throughout the pandemic; Mark Brim, President of Aquent's Recruiting Division Vitamin T, breaks down how remote work has transformed hiring and recruiting process across the board;
Julie Bauke, President & Chief Career Strategist at The Bauke Group, breaks down why companies are being 'ghosted' by new hires, and what repercussions can come from this.
Mark Brim, President of Aquent's Recruiting Division Vitamin T, joins On The Job to discuss how remote work has transformed hiring and recruiting process across the board, and the latest trends surrounding remote hiring across the globe.
Julie Bauke, President & Chief Career Strategist, The Bauke Group, joins Cheddar to discuss the phenomenon of new hires accepting jobs and quitting before their first day of work, and how ghosting one company may come back to bite you when you find a job you really want.
Miami's real estate market has boomed since early 2020, thanks to an overall strong housing market, remote work, and no income tax as incentives. The city is preparing to welcome even more residents as people relocate to warmer climates to work from home. Garrett Derderian, director of market intelligence at SERHANT, joined Cheddar to discuss the Magic City's red hot market.
