Bed Bath & Beyond (BBBY) Misses Q1 EPS by 79c

Bed Bath & Beyond (NASDAQ: BBBY) reported Q1 EPS of ($1.96), $0.79 worse than the analyst estimate of ($1.17). Revenue for the quarter came in at $1.31 billion versus the consensus estimate of $1.34 billion.

Outlook

The Company is not providing financial guidance for 2020 due to the continued uncertainty related to the impact of the COVID-19 pandemic. The COVID-19 pandemic remains volatile and the impact continues to evolve, and it could adversely affect the Company's store re-opening plans and other measures intended to address its impact and/or the current expectations of its future business performance.

During the fiscal 2020 first quarter, the Company took decisive action to proactively manage the unprecedented financial and operational impacts of COVID-19, while prioritizing the investments designed to rebuild and grow the business. In prioritizing investments such as the accelerated launch of BOPIS and Curbside Pickup services, the Company rapidly evolved to meet the changing needs of its customers during this time. The Company is taking measured steps to re-open stores to the public, including the launch of its Store Safety Plan to help ensure customers can shop confidently. The Company believes it has a strong financial position to manage through these uncertain times.

In addition, as part of the extensive business transformation underway, the Company continues to drive strong actions as part of its ongoing restructuring program. These include, among other things, efforts to reduce cost of goods and drive supply chain transformation to address gross margin pressures related to the substantial shift of sales to digital channels. Furthermore, the Company plans to right-size its real estate portfolio by closing approximately 200 mostly Bed Bath & Beyond stores over the next two years and focus on other SG&A expense reductions.

The Company expects the aggregate benefit from these actions will generate future annualized savings of between $250 and $350 million, excluding related one-time costs.

For earnings history and earnings-related data on Bed Bath & Beyond (BBBY) click here.

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