US retailer Bed Bath & Beyond revises FY21 outlook to flat sales

01 Oct '21

2 min read

Pic: Bed Bath & Beyond

US-based omnichannel retailer Bed Bath & Beyond has reported a 26 per cent sales decline to $1.98 billion in its second quarter (Q2) of FY21 over the sales of $2.68 billion in the same period of previous fiscal. The company has revised its outlook for the full year and expects sales to be flat to up slightly between $8.1 billion to $8.3 billion.

“While our results this quarter were below expectations, we remain confident in our multi-year transformation. Following solid growth in June, we saw unexpected, external disruptive forces towards the end of the quarter that impacted our outcome,” Mark Tritton, Bed Bath & Beyond’s president and CEO, said in a press release.

Buybuy Baby banner continued to build on its positive momentum from the past several quarters, growing double digits due to strength in apparel and travel gear and increasing market share for the period, according to the company.

“In August, the final and largest month of our second fiscal period, traffic slowed significantly and, therefore, sales did not materialise as we had anticipated. As COVID-19 fears re-emerged amid the on-going Delta variant, we experienced a challenging environment,” Tritton continued.

“Furthermore, unprecedented supply chain challenges have been impacting the industry pervasively, and we saw steeper cost inflation escalating by month, especially later in the quarter, beyond the significant increases that we had already anticipated. This outpaced our plans to offset these headwinds. These factors impacted sales and gross margin,” Tritton further added.

The bedding and home décor retailer incurred a net loss during the second quarter, that ended on August 28, 2021, of $73 million compared to the profit of $218 million in the Q2 FY20.

“As a group, we continued to leverage our enhanced digital channel, with significant growth above 2019 at nearly double the proportion of sales. Operationally, we entered the next phase of our supply chain modernisation through our partnership with Ryder which is instrumental to our strategy. We are committed to executing over the short, mid and long term, especially during these early stages of our multi-year plan,” Tritton said in the release.

Fibre2Fashion News Desk (JL)

More Bed Bath & Beyond Inc News... More Retail News - United States Of America...