The COVID-19 pandemic hasn't been kind to retail businesses, including major chain Bed Bath & Beyond. Currently, the company maintains more than 1,000 stores across the U.S.
However, most of Bed Bath & Beyond's depth has diminished during the COVID-19 pandemic. As sales shrunk, evidence of the company's faltering fiscal health swirled since its quarterly earnings reports in 2020.
Bed Bath & Beyond's Q3 earnings
Bed Bath & Beyond will declare its third-quarter earnings on Jan. 7. The company, which trades publicly as "BBBY" on the Nasdaq Exchange, managed to reap new growth throughout 2020. The share value ended the year 10.45 percent higher than the beginning of 2020. Also, a 90 percent boom from September through October proves that the company's quarterly earnings are still a hot topic.
At the same time, Bed Bath & Beyond closed hundreds of stores in an attempt to trim its expenditures and maintain strength amid the COVID-19 pandemic. With a shift to buy-online-pickup-in-store and e-commerce, the business managed to pull its weight throughout the remainder of an unequivocally tough year.
Analysts suggest that sales will be up 0.3 percent from the prior-year quarter. The earnings could be up by $0.21. With so much slimming, it's possible that the company will showcase continued stability, all things considered.
Bed Bath & Beyond closed 200 stores
In mid-2020, Bed Bath & Beyond announced a clear-laid plan to close 200 retail stores over the course of two years. By the end of 2020, 63 of those stores had made their final sale.
While the company is headquartered in N.J., the Bed Bath & Beyond store closures range from Alabama to Washington.
Bed Bath & Beyond wants to avoid bankruptcy
It seems like Bed Bath & Beyond is exploring every avenue possible to tactfully avoid bankruptcy. The company is shifting how it does business — focusing less on tangible reach and more on adapting to the changing consumer landscape.
For CEO Mark Tritton, the shift is intentional. Since Tritton became the CEO in 2019, he has worked tirelessly to slim the workforce, storefronts, and overall expenses. His approach may have been necessary considering that the company lost 80 percent of its value from 2015 to 2019. Before Tritton, the board of directions asked former CEO Steven Temares to step down from his role and he obliged.
Is Bed Bath & Beyond going out of business after 45 years?
A quick turnaround might save Bed Bath & Beyond, but the outcome depends on the third-quarter earnings. Just a few days shy of the call, investors are looking forward to determining whether it's a good time to hop on board Bed Bath & Beyond or take the earnings and run.
With fellow retail competitor JCPenney turning over its own CEO and working to recover from Chapter 11 bankruptcy, it's clear that Bed Bath & Beyond isn't alone in the current struggle. The difference seems to be how companies handle the struggle as well as a bit of luck.