Bed Bath & Beyond slumps with spending on home goods

Bed Bath & Beyond on Thursday reported a bigger quarterly loss as the embattled US home goods chain struggled to stock its shelves with in-demand styles and people cut back on spending amid decades-high inflation.

Once known as a “category killer” in home goods, Bed Bath’s stock and fortunes have slumped after its move to sell more store-branded products flopped and led to a reshuffle of its management team this year.

The big-box chain now aims to attract more consumers by selling more national brands and dishing out coupons, but has a mountain to climb, with people spending less on home goods and an interim CEO and finance chief in place.

Bed Bath said on Thursday its liquidity is $850m, after agreements for more than $500m in new financing to buy more time to steady the ship. The company burnt through $325m in the reported quarter.

Analysts at UBS have estimated Bed Bath will burn through $1.5bn in cash over the next eight quarters.

The company’s net loss was $366.2m, or $4.59 per share, for the second quarter, compared with a loss of $73.2m, or 72c per share, a year earlier.

Bed Bath’s shares fell 1.4% to $6.37 in premarket trading.

Reuters