On the brink of financial ruin and in need of massive additional cost cuts, execs at Bed Bath & Beyond appear to be OK with ceding even more market share to rivals such as Target and Walmart.
Bed Bath & Beyond said this week that it's on track to close 150 stores as part of an effort to corral costs and save cash, updating a list of locations that now totals 122 stores. That list shows Bed Bath & Beyond will shutter at least 18 stores in the key Tri-State area of New York (8), the company's home state of New Jersey (7), and Connecticut (3) in addition to at least 16 stores in California.
Once these locations close, according to the latest estimates, the near-death retailer will operate 144 stores in the Tri-State area and 71 in California. By comparison, Target and Walmart operate around 164 and 226 stores, respectively, in the Tri-State area and an estimated 314 and 321 stores, respectively, in California.
Bed Bath & Broke?
Bed Bath & Beyond continues to struggle mightily: The struggling retailer released its long-awaited holiday quarter results on Tuesday, and the picture was not pretty.
Here are seven numbers that stood out to Yahoo Finance:
Net sales crashed 33% from the prior year.
Comparable digital sales fell a whopping 33%.
Bed Bath & Beyond banner comparable sales plunged 34%.
BuyBuyBaby banner comparable sales tanked in the "low 20" percentage area.
Adjusted operating loss of $225 million.
Only $153.1 million in cash on the balance sheet.
150 stores still expected to be closed.
In an approximate 10 minute earnings call with no analyst questions, Bed Bath & Beyond CEO Sue Gove outlined $80 to $100 million more in cost cuts. Besides store closures, the company is now firing even more corporate workers.
Bed Bath & Beyond recently said bankruptcy was on the table as it works to shore up its tattered balance sheet after the disastrous holiday shopping season.
Gove reiterated on Tuesday that all options remain on the table to save the retailer.
"As we shared last week, we continue to work with advisors as we consider all strategic alternatives to accomplish our near- and long-term goals," Gove said. "We have a team, internally and externally, with proven experience helping companies successfully navigate complex situations and become stronger. Multiple paths are being explored and we are determining our next steps thoroughly, and in a timely manner. We are committed to updating all stakeholders on our plans as they develop and finalize – particularly our employees and partners, who are the essential catalysts of our business and the cornerstones of our future."
Shares rallied 21% on Tuesday's session as Gove didn't utter the word bankruptcy in the earnings release or brief conference call. The stock added another 25% or so premarket on Wednesday, but the price of shares remains in early 1990s territory.
READ MORE: Bed Bath and Beyond timeline: The chaotic final years of a classic American retailer
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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