US-based domestic retailer Bed Bath and Beyond has reported a drop in sales for the fourth quarter of last year.
The company’s net sales fell by around 16% to $2.62bn during the quarter ending on 27 February, down from $3.11bn a year prior.
This fall was attributed to the impacts of the company’s non-core banner divestments and store closures, with 118 Bed Bath and Beyond stores having been closed in the quarter.
Bed Bath and Beyond reported a generally accepted accounting principles (GAAP) net income of $9m, indicating an adjusted net income of $47m.
The company said that its comparable sales increased for the third consecutive quarter, with its Total Enterprise comparable sales increasing by 4% and online sales by almost 86%.
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Bed Bath and Beyond president and CEO Mark Tritton said: “Last year was a year of fast-paced transformation in which we reformed the past, overcame extraordinary circumstances of the present and established a firm foundation for the future.
“Despite the challenges created by the Covid-19 pandemic, we relentlessly focused on taking purposeful and bold steps to transform our entire organisation. We remained true to our plans to rebuild our authority in this industry and restore this iconic company.”
Bed Bath and Beyond noted that it had built a ‘robust foundation’ to carry out a three-year growth plan last year.
Over the year, 37% of its digital revenue was fulfilled by stores, with more than $3bn reported in digital sales.
The company reaffirmed its sales outlook for this year, which ranges between $8bn and $8.2bn.
It also said that store closures due to the Covid-19 pandemic, non-core banner divestitures and its ongoing fleet optimisation programme will impact its first-quarter net sales.
Bed Bath and Beyond has predicted first-quarter net sales to increase by more than 40% year on year and its core banner stores’ sales to increase by 65% to 70%.
It is also expecting to launch at least eight brands this year.
Tritton said: “We are excited to start fresh this year with our sharpened size and scale, a healthier portfolio of core banners and a stronger financial position to execute the first phase of our three-year transformation journey.”