Bed Bath & Beyond finally announced the performance of the third quarter of the fiscal year ended November 27. Sales of the company’s five core commodities have declined, withdrawal of bathroom, bedding and decorations, the biggest decline.
First, quarter sales decline near 30%, loss of loss
Bed Bath & Beyond’s total sales of $ 1.88 billion in the third quarter of fiscal year, a decrease of 28%. Compared with the same period last year, the company’s total sales decreased by 7%, down 4% compared to the third quarter of 2019. The company’s quarterly loss has expanded from $ 75 million from the same period last year to $ 278 million.
Second, the key category is generally more than 10%
Take a look at the Bed Bath & Beyond key category product peers performance comparison:
Bedding: 14% over 2020, down 4% from 2019;
Bathroom: 10% lower than 2020, 10% from 2019;
Kitchen food preparation: 9% over 2020, up 6% from 2019;
Interior ornaments: 19% from 2020, a decrease of 12% from 2019;
Family storage: 14% over 2020, 1% increased from 2019.
Overall, the five major core commodities of BED BATH & BEYOND fell by 13% compared to the third quarter of last year, down 3% compared with 2019. Other categories of comprehensive sales have fallen by 4% over last year, down 10% from 2019.
Third, inventory shortage causes losses
BBB said that lack of supplementary stocks and other supply chain problems have led to about $ 100 million in seasonal sales, and the problem is particularly serious in December. Marktritton emphasized that BBB has made great progress in the development of its own brands, and has launched eight self-branded goods in 2021. However, due to the supply chain problem, most of these newly released goods have missed the sales season.
Inventory shortages not only affect the supply of goods, but even impact on promotion promotion. BBB’s commodity poster has always attracted the important means of attracting customers to the store, but encounters insufficient printing paper inventory, the people who distribute posters are not enough, affecting promotion promotion.
Fourth, the development goals are covered with shadows
The company’s CEO Mark Triton said: “If you have the first time to join this company, there is something that remains unchanged, that is, it reminds us that we are carrying out a comprehensive transformation, while in a highly unpredictable environment Operating business. “He added that the company will seriously analyze the third quarter, effectively implement the solution, and promote the long-term goals of structural transformation in the quarter to ensure the sustainability of the three-year goals.
BBB has included a number of shopping seasons, including Thanksgiving, since the third quarter of the fiscal year in September last year, is considered to be the most important sales season of the whole year. According to statistics, the United States is only 13.268 billion US dollars only in the November of last year, an increase of 16.3% over the same period in 2020. As a large-scale retail company of household items, BBB has never effectively solves the supply chain problem, and sales growth is against the market, and the loss will continue to expand, and the development goals will be covered in the future.
In a positive aspect, the BBB store renovation program has achieved results. By the end of February, the fourth quarter of fiscal year, BBB will complete the transformation of approximately 130 stores, and complete the completion of 400 stores (half of the total number of stores). One-third of the transformation goals. The transformed profit margin is higher. The BBB is located in the flagship store of the Chalsea, Manhattan. After the summer is re-opened last year, although the size of the store area and inventory unit decreased by 15%, the income increased by 30%.