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.
Darren Schuringa, Founder & CEO, of ASYMmetric ETFs, talks about the strength of the U.S. consumer and discusses how tension between Russia and Ukraine is impacting the energy market.
Robert Conzo, CEO of The Wealth Alliance, breaks down the major headwinds impacting markets and highlights areas within technology showing potential growth.
Nissan is revving up its commitment to electric vehicles. the Japanese automaker announcing plans to invest $500 million to transform its assembly plant in Mississippi to build two all-new EV models starting in 2025. It's all part of Nissan's goal to have 23 electrified models for the Nissan and Infiniti brands globally by 2030. Ashwani Gupta, Nissan's COO, joined Cheddar's Opening Bell to discuss this announcement and the company's EV goals moving forward.
Blue Apron CEO Linda Findley joined Cheddar News to talk about the meal kit company’s Wellness 360 holistic wellness campaign and previewing Q4 and end of year results to be released next week. "Really the concept here is about holistic wellness and health," Findley said. "So thinking through not just what you're eating, but also mental health and financial health. And so we try to bring lots of tools to people so that they can think about ways to manage that balance."
Cepton made its debut on the Nasdaq under the ticker symbol ‘CPTN’ on Thursday. Jun Pei, the co-founder and CEO, joined Cheddar News to discuss going public and its lidar-based solutions for improving safety in autonomous features in cars. "It's really just a huge benefit in addition to radar and camera, and becomes an entire sensor suite that will bring cars to a higher level, both for safety and autonomy."
A Senate bill unveiled on Wednesday looks to tackleonline safety for children by regulating Big Tech and social media platforms to deter users from content that can harm their mental health. Irene Ly, a policy counsel for the age-based ratings and review organization Common Sense Media, joined Cheddar News to break down the potential of the Kids Online Safety Act. "We can't be imposing such a big burden on parents to be doing it all on theirselves," Ly said. "I think you also have to keep in mind that parents often didn't grow up with social media, so they don't understand what it's like to be addicted to social media or really understand how they work."
While many still remain skeptical about the metaverse, big tech firms and even one big bank are ready to expand their virtual worlds. Facebook parent company has pivoted so hard it will now call its employees 'Metamates,' and even JPMorgan Chase has created its own digital lounge on one virtual platform. While the sector remains young, there seems to be significant investment opportunity, especially with companies like Nvidia. Adam Johnson, a portfolio strategist at Adviser Investments, joins Closing Bell to discuss which companies could win in this space, consumer appetite, and more.
