Shares of struggling brick-and-mortar retailer Bed Bath & Beyond plunged to a multi-decade low on Thursday amid retail turmoil during the pandemic.
Bed Bath & Beyond’s stock plunged nearly 20% to $1.98 in Thursday’s pre-market trading, pushing the stock to a low seen nearly 30 years ago.
The ailing New Jersey-based retailer that sparked a sudden economic recession saw sales collapse 33% in the most recent quarter to 1.3 billion on Thursday morning as a result of declining customer traffic and declining inventory levels. announced that it expects it to be below the dollar.
CEO Sue Gove said in a statement that it was due to “inventory constraints” and “economic challenges,” including lower credit limits that prevented the company from buying more products. , accusing it of performing worse than expected.
The company also warned that recurring losses in recent quarters have contributed to “substantial doubts about the company’s ability to continue”, adding that restructuring, debt refinancing, asset sales, and even bankruptcy are likely. He said he was considering actions such as applying for relief.
“These actions may not be successful,” the company warned, expecting to post a loss of about $385.8 million in its next earnings report.
Bed Bath & Beyond, which has struggled to build a strong digital presence, has become one of the hardest-hit brick-and-mortar retailers of the last decade as customers turn to online shopping. But the company’s share price began surging early last year, and at one point more than tripled as retail traders plunged into a heavily shorted stock. The frenzy has cooled, but billionaire Ryan Cohen, who has yet to make a successful bid to turn around fellow retailer GameStop, reveals a $120 million investment in a home goods store. That enthusiasm was also short-lived, with Cohen cashing his stake in August.
Bed Bath & Beyond stock is down 94% from its January 2021 closing price of about $35. Fellow meme strain GameStop has collapsed about 80% from its peak almost two years ago.
Bed Bath & Beyond inventory needs price cuts after revenue drops 28% (Forbes)
Bed Bath & Beyond Stock Soars After Billionaire GameStop Chairman Cohen Discloses $120 Million Investment (Forbes)