BBBY stock is having one of the worst of worst trading sessions on Thursday as the giant retailer Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported a second consecutive quarter of net loss.
The home goods retailer succumbed to a net loss of $371.1 million or $2.91 a share, for the three months ended June 1, 2019. Removing the impact of a one-time charge of $400 million, the retailer said it generated a profit of $0.12 a share, above consensus estimates of 8 cents a share. Net sales for the first quarter dropped 6.6% to $2.6 billion.
For the full year, Bed Bath & Beyond is projecting revenues in the range of $11.4 billion and $11.7 billion and net earnings of between $2.11 and $2.20 a share for BBBY stock.
Concerned by two consecutive quarters of net loss, CEO Mary Winston says management recognizes the need for significant fundamental change when it comes to business transformation. Consequently, management is to focus on four near-term priorities that include stabilizing and driving bottom-line growth. There are also plans to reset the company’s cost structure.
“We are committed to completing a deep review of the business to prioritize and drive forward the most meaningful initiatives to improve performance. As we execute against these near-term priorities, our focus will remain on delighting our customers and delivering long-term value for our shareholders,” Winston in a statement.
BBBY stock is down 8.50% and now trading at $10.54 after hitting a new 21-year low of $10.43 earlier in the session.
A confirmation that Bed Bath & Beyond continues to return value to shareholders through buybacks may strengthen BBBY stock in the market. In the recent quarter, the company purchased $81.5 million worth of stock. The company exited the quarter with $923 million in cash and investments, a 9% increase compared to holdings as of the end of the 2018 fiscal year.
BBBY stock has lost 45% since April 10.
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