What happened

Bed Bath & Beyond (NASDAQ:BBBY) shareholders underperformed a historically weak market last month as the stock lost 24% compared to an 8% decline in the S&P 500, according to data provided by S&P Global Market Intelligence.

The drop added to significant losses for a stock that is down over 70% in three years.

A woman checks her smartphone while shopping.

Image source: Getty Images.

So what

February's slump was sparked by the home goods chain's announcement of certain operating and financial metrics for the holiday season. Management said sales fell 5% in December and January as customer traffic declined. "We are experiencing short-term pain in our efforts to stabilize the business," CEO Mark Tritton said in a press release. Investors responded to the news by selling off the stock and becoming even more pessimistic about its turnaround effort.

Now what

Bed Bath & Beyond noted some positive aspects of its business, including robust growth in the e-commerce segment. The company also subsequently announced new layoffs and restructuring efforts aimed at completely changing its operating model. These efforts might spur a rebound in this battered stock, but so far investors haven't seen any evidence of the stabilizing growth trends that will be necessary to any sustainable turnaround.