Bed Bath and Beyond has announced it will be closing its store on Route 9 in Howell Township. The closure is part of an earlier announced plan to shut down two hundred stores over the next two years. With sales plunging for the business, in July the company announced it will be closing stores.
According to the company’s first quarter financial report, the company’s fiscal first quarter spanned the most critical months to date of the COVID-19 pandemic – March, April and May. Net sales were approximately $1.3 billion, a decrease of 49% compared to the prior year period due to temporary store closures.
- Net sales from digital channels grew 82%, including sales growth in excess of 100% during April and May 2020, while net sales from stores, of which 90% of the Company’s total fleet were closed during the majority of the quarter, declined approximately 77%.
- Net sales from digital channels represented nearly two-thirds of the Company’s fiscal 2020 first quarter total net sales.
- Gross margin decreased 780 basis points to 26.7%, unfavorably impacted by channel and product mix related to the substantial shift in sales to digital channels, including higher fulfillment costs, lower margin, COVID-essential products sold during the quarter, and the deleverage of fixed expenses.
- SG&A expenses decreased $169 million or 19% compared to the prior year period, driven by cost reduction interventions and COVID-19 impacts. Excluding charges related to severance costs, adjusted SG&A expenses decreased $123 million or 15% compared to adjusted SG&A in the prior year period.
- Net loss per diluted share of $(2.44) included an unfavorable impact of approximately $0.48 from special items including non-cash charges related to impairments of certain store-level assets and tradenames and severance costs. This compares with a net loss of $(2.91) per diluted share for the fiscal 2019 first quarter. Excluding special items from both quarters, the Company reported an adjusted net loss of $(1.96) per diluted share for the fiscal 2020 first quarter, and adjusted net earnings of $0.12 per diluted share for the fiscal 2019 first quarter.
Thanksgiving Day Closure
The chain will also close all of its stores on Thanksgiving Day, following a trend this season in the retail industry.
President & CEO Mark Tritton of Bed Bath & Beyond Inc. said, “Throughout the COVID-19 crisis, our dedicated associate teams have taken exceptional steps to keep each other safe, our customers served, and our communities supported with the essential items they need. We’re so proud of what our associates have achieved to help our customers feel at home during this time.
“In a year when it’s more important than ever to celebrate the season with friends and family, we will be there to help our customers’ make this Holiday season extra special. We’re also pleased that we can ensure our people have time to be with their loved ones this Thanksgiving and are so grateful for their commitment and support throughout this extraordinary year.”
The Company will shortly unveil plans to make it even easier to feel at home this Holiday season, including great deals, inspiring products, thoughtful gifts, new shopping hours and services that allow everyone to shop safely and conveniently.