Bed Bath & Beyond CEO Mark Tritton joined CNBC's Courtney Reagan on Wednesday to discuss the company's fourth-quarter earnings results. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi Bed Bath & Beyond on Wednesday reported a double-digit decline in fiscal fourth-quarter sales, as ongoing store closures and divestments that are part of a bigger turnaround plan continue to weigh on results. Its shares fell more than 8% in premarket trading, as some investors expected to find clearer signs of progress. “There are some positive things, but it’s still moving,” said Jessica Ramirez, a retail research analyst for Jane Hali & Associates. “Knowing the Street, they want these turnarounds quite quickly. By this time, investors want things to be a bit in better shape.” The big-box retailer reaffirmed a prior sales outlook for the coming fiscal year, noting that positive sales momentum has carried into the current quarter. Many Americans have turned to the company’s stores and website during the Covid pandemic to buy cleaning supplies, kitchen appliances, bedding and other items for their homes. Results in its first quarter, however, are going to be messy, Chief Executive Mark Tritton explained in an interview. In the year-ago period, all of Bed Bath & Beyond’s stores were shut due to the health crisis, and it was totally reliant on its digital business to fuel sales. That’s unlike some retailers, notably Walmart and Target, that have been able to keep their stores open throughout the pandemic. “What you see is some number turbulence,” Tritton said. “You’re going to see a bifurcation in the retail market.” Here’s how the company did during the quarter ended Feb. 27, compared with what analysts were anticipating, using a survey by Refinitiv: Earnings per share: 40 cents adjusted vs. 31 cents expected Revenue: $2.62 billion vs. $2.63 billion expected Bed Bath & Beyond’s net income during the period grew to $9.1 million, or 8 cents per share, compared with a loss of $65.4 million, or 53 cents per share, a year earlier. Excluding one-time adjustments, the company earned 40 cents per share, better than the 31 cents expected by analysts, polled by Refinitiv. Net sales fell about 16% to $2.62 billion from $3.11 billion a year earlier. That was slightly short of the $2.63 billion that analysts were anticipating. The company said the year-over-year decline was driven, in part, by the sale of its Christmas Tree Shops and Cost Plus World Market businesses, as well as ongoing store closures. Same-store sales rose 4%, the company said. Online sales surged 86% during the fourth quarter, but that wasn’t enough to totally offset reported double-digit declines of in-store traffic. The company noted that 41% of online sales were fulfilled by stores. Within the namesake Bed Bath & Beyond business, it saw the most growth in home organization, followed by kitchen food prep, indoor decor and then bedding. Same-store sales at the Bed Bath & Beyond banner were up 6%. Bed Bath & Beyond reaffirmed its fiscal 2021 sales outlook that it gave back in January, which calls for sales to be within a range of $8 billion and $8.2 billion. Analysts were estimating 2021 sales of $8.18 billion, according to Refinitiv. The current quarter will be impacted by not only store closures in the year-ago period, but also by the company’s ongoing restructuring. Its four core banners are Bed Bath & Beyond, Buybuy Baby, Harmon Face Values and Decorist. The retailer is forecasting first-quarter net sales to increase by more than 40% year over year. Analysts had been calling for a 45.8% jump. Excluding the impact from divested businesses, however, Bed Bath & Beyond said sales from its four core banners could grow upwards of 65% to 70%. » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC https://www.cnbc.com/select/best-credit-cards/ #CNBC #CNBCTV

• published: 14 Apr 2021
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