Bed Bath & Beyond (BBBY) on Wednesday announced fiscal fourth-quarter results that started to show the negative impact of COVID-19 on its retailing network.
The fourth-quarter period ran through March 2, which doesn't include the widespread social distancing efforts that began about two weeks later. Still, the chain's sales fell 6%, translating into another quarter of modest market share loses. "These results strengthen our resolve," CEO Mark Tritton said in a press release, "to make the necessary, bold, and broad-based changes needed to modernize our business ."
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The specialty retailer succeeded at reducing its inventory and raising cash over the past few months, especially as store closures began on April 2. With help from an additional $236 million loan from its credit facility, those moves brought its cash balances to $1.4 billion as of early March, or 39% above last year's mark.
Executives currently see stores beginning to reopen as early as May 2 but have stressed that the situation is still fluid. As a result, they declined to offer any financial forecasts for the new fiscal year except to say that Bed Bath & Beyond's results are likely to be heavily affected by COVID-19 and related containment efforts.
