Bed Bath & Beyond Has First Yearly Loss, Sales Decline as a Public Company
By Maria Armental
Bed Bath & Beyond Inc. swung to a loss driven by an impairment charge in the latest quarter and reported its first annual sales decline in its nearly three decades as a public company.
The last fiscal year also marked the first time Bed Bath & Beyond posted an annual loss since it went public in 1992. Sales for the year were $12.03 billion, down from $12.35 billion a year earlier.
The home-goods retailer -- caught in a proxy battle with a group of investors who are pushing to overhaul its board and replace its chief executive -- on Wednesday reported a fourth-quarter loss of $253.8 million, or $1.92 a share. A year earlier, the company posted a profit of $194 million, or $1.41 a share.
Excluding a goodwill and trade-name impairment charge, the company said adjusted profit for the quarter was $1.20 a share.
Revenue fell to $3.31 billion from $3.72 billion a year earlier. Same-store sales fell 1.4%.
Analysts surveyed by FactSet had projected an adjusted profit of $1.12 a share and $3.33 billion in sales.
Shares fell 7% to $18.06 in after-hours trading.
Legion Partners Asset Management LLC, Macellum Advisors GP LLC and Ancora Advisors LLC, which control a combined stake in the company of about 5%, have said Bed Bath & Beyond failed to adapt over time and allowed costs to increase.
On Wednesday, the company named a new lead independent director and pledged additional changes to its board, governance structure and compensation practices.
This year, the company expects to make $2.06 to $2.15 a share, or $2.11 to $2.20 a share on an adjusted basis, compared with analysts' estimates of $1.85 a share.
The company was founded in 1971 by Leonard Feinstein and Warren Eisenberg, who share the board's chairmanship. When it went public, it had 34 stores. It now has more than 1,500.
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(END) Dow Jones Newswires
April 10, 2019 17:31 ET (21:31 GMT)Copyright (c) 2019 Dow Jones & Company, Inc.