Bed Bath & Beyond’s sales declined 28% in its fiscal second quarter, but the performance managed to meet Wall Street’s expectations.
The Union, New Jersey-based home goods retailer reported sales of $1.44 billion for the three months ended Aug. 27. That compares with sales of $1.99 billion a year earlier.
Sales at stores open at least a year, a key indicator of a retailer’s health, fell 26%.
Interim CEO Sue Gove said in a statement that the chain sped up markdowns and strategic promotions in order to deal with some of its inventory issues.
“Although still very early, we are seeing signs of continued progress as merchandising and inventory changes begin,” she said.
The company is looking to cut costs by about $250 million in the second half of the year to boost its available cash.
The actions come about a month after Bed Bath & Beyond announced that it would be closing some stores and laying off workers in a bid to turn around its beleaguered business. The company said that it would shut about 150 of its namesake stores and slash its workforce by 20%.
The retailer also announced at the time that it would revert to its original strategy of focusing on national brands, instead of pushing its own store labels.
Bed Bath & Beyond Inc. lost $366.2 million, or $4.59 per share, in the quarter.
Losses, adjusted for asset impairment costs and restructuring costs, were $3.22 per share.
Analysts polled by Zacks Investment Research expected a smaller loss of $1.59 per share.
The company still anticipates a fiscal full-year comparable sales decline in the 20% range.
Shares fell 3.4% in early trading as the broader markets declined.
