Bed Bath & Beyond plunged as much as 25% Thursday after the company reported dismal first quarter earnings that showed the extent of the damage COVID-19 had on its business.
Here are the key numbers:
The retailer also announced it plans to close approximately 200 stores over the next two years as it looks to optimize its retail footprint.
One bright spot for Bed Bath & Beyond was sales from its digital channel, which increased 82% in the quarter, and represented almost two-thirds of total sales. Digital sales include its curbside pick up and buy-online-pick-up-in-store services.
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The company declined to provide financial guidance for 2020 due to uncertainties surrounding the impact of the COVID-19 pandemic.
The bank said “comp sales trends have accelerated significantly through June as stores have reopened,” and it’s encouraged by the retailer’s “commitment to taking out unproductive stores” and continuation of strong growth in digital sales.
BofA said it believes investors are “significantly undervaluing a turnaround” of Bed Bath & Beyond’s core business, and that there could be “substantial value creation” from the buybuy Baby brand, which is owned by Bed Bath & Beyond.
In a CNBC interview on Thursday morning, Bed Bath & Beyond’s CEO Mark Tritton remained optimistic on the company’s turnaround efforts.
“We’ve seen an acceleration of our potential strengths and opportunities amid the COVID-19 environment,” Tritton said. He added, “We’re seeing some great numbers in June and beyond, so we’re excited about what we have ahead for us.”
Markets Insider