Affected by supply chain issues! Bed Bath & Beyond's fourth quarter performance is weak

It is learned that on April 13, the US home furnishing retailer Bed Bath & Beyond released its fourth quarter results ending March 31, with sales falling 22% to US$2.05 billion from US$2.62 billion a year ago, and online sales falling 18% year-on-year.

Chief Executive Mark Tritton said the sales decline was blamed on a series of challenges that have cooled momentum in its stores, including product holdups and ongoing supply chain disruptions that have left key items out of stock.

Tritton noted that the out-of-stock situation resulted in an estimated loss of about $175 million in sales this quarter, which is higher than the previous quarter, when supply chain bottlenecks cost the company about $100 million.

In addition, major headwinds in the macro environment also affected sales. For example, it was more expensive to transport goods, and most of its seasonal goods were stuck at ports and delayed.

Tritton also said consumers are feeling growing uncertainty, which is causing demand to pull back. He said same-store sales are down about 20% so far in the first quarter, a steeper drop than in the previous three months.

Bed Bath did not provide specific future forecasts but said it expects sales and margins to improve in the second half of its next fiscal year as supply chain conditions ease.

Currently, Bed Bath is overhauling its supply chain to better manage all merchandise as it imports goods and delivers them to distribution centers and stores. The company is adding more regional distribution centers on both sides of the country. He said these efforts were already underway but have become more urgent.

It is learned that not long ago, BedBath reached an agreement with Kroger to sell products on its website and display goods in its grocery stores.

If there's one bright spot, it's BedBath 's wedding and baby offerings. The U.S. wedding industry is expected to boom in 2022, with as many as 2.6 million weddings expected to take place this year, up from 2.2 million in 2019 before the pandemic.

Tritton is pinning his hopes for a turnaround on this year's wedding boom. He said BedBath's wedding and baby product sales are rising, which bodes well for later sales indicators.

Editor ✎ Xiao Zhu/

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