US-based homeware retailer Bed Bath & Beyond has reported net sales of $1.43bn for the second quarter (Q2) of fiscal 2022 (FY22), down by 28% from $1.98bn a year earlier.

Comparable sales dropped by 28% for the Bed Bath & Beyond banner, while buybuy BABY’s sales decreased in the high-teens after an increase in Q2 2021.

Bed Bath & Beyond’s gross margin dropped by 260bps to 27.7% and its adjusted gross margin also fell by 630bps to 27.7% in Q2 2022.

The retailer’s net loss widened to $366m in the quarter from $73m in the same period of FY21.

Its loss per diluted share stood at $4.59, against $0.72 in Q2 2021.

Bed Bath & Beyond director and interim CEO Sue Gove said: “Our results for the second quarter came in as previously expected and announced.

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“While our sales and profit results do not yet reflect the strategic and financial actions we have initiated to change our performance, they do demonstrate sequential progress in several key areas.

“In the first quarter, we experienced a significant dislocation between sales and inventory that we began to address immediately during the second quarter.

“Aggressive inventory optimisation actions, including accelerated markdowns and strategic promotions, led to double digit improvement in this gap.

“Working with our supplier partners has also been an important focus area and our payables are considerably healthier than in the prior quarter as evident on our balance sheet.”

For the full year, Bed Bath & Beyond expects nearly $250m in capital expenditures versus its original plans of around $400m.

Gove added: “We have worked quickly to deploy strategic and financial changes swiftly to increase cash through business growth and lowering our cost structure by approximately $250m in the second half of fiscal 2022, or an expected $500m on an annualised basis. 

“Regaining market share and enhancing liquidity are our top priorities.”