In the fourth quarter of fiscal 2018, Bed Bath & Beyond’s (BBBY) management expects its revenue to fall in the low-double-digit percentage range due to the shifting of Thanksgiving week to the third quarter and one fewer week of operation in fiscal 2018 compared to fiscal 2017.
Analysts expect the company to post revenue of $3.33 billion in the fourth quarter, a fall of 10.4% from $3.72 billion in the fourth quarter of fiscal 2017.
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By the end of the third quarter of 2018, BBBY operated 1,550 stores compared to 1,552 stores at the end of the fourth quarter of fiscal 2017. The decline in the company’s store count is expected to lower its revenue. Its management’s decisions to eliminate less-profitable SKUs from its assortment, increase its free shipping threshold, and modify its pricing algorithm are expected to negatively affect its SSSG (same-store sales growth) in the period.
BBBY’s management is replatforming its digital commerce platforms for its Bed Bath & Beyond and buybuy BABY stores to drive its SSSG. The company is also reimaging its stores and testing different assortments and visual merchandising to enhance the customer experience. Management has stated that these initiatives are showing positive results.