Bed Bath and Beyond (BBBY) stock jumped on Thursday after reporting its quarterly results. The retailer missed estimates on the top and bottom lines and slashed its full-year forecast. However, its adjusted gross margin came in at 35.9%, a beat compared to Street expectations of 34.3%.
“In response to a sharp increase in inflation and pervasive freight and supply chain headwinds, we swiftly implemented market driven pricing, promo optimization and product mix plans,” CEO Mark Tritton said in the company’s quarterly results statement.
Comparable sales declined 7%, coming in below analyst expectations. Net sales clocked in at $1.88 billion, while adjusted loss per share came in at 25 cents. Both of those metrics missed consensus estimates.
Bed Bath and Beyond is undergoing a 3-year transformation plan. The company is in the middle of shutting down some stores and hinted at more possible closures.
“While we continue to target sales improvement, we are also focused on SG&A. We are pursuing additional expense optimization measures of approximately $100 million annualized that will explore areas such as store fleet optimization, fixed costs and discretionary savings opportunities,” said Tritton.
Bed Bath and Beyond has been a “meme” favorite this year. Short interest on the stock is more than 20% of the float, which is high. That indicates that upward moves may often be short coverings.
The stock has touched a 52-week intraday high of $53.90. On Thursday, however, it was trading around the $15 level.
Last summer, Tritton told Yahoo Finance’s Brian Sozzi he welcomes the retail investors who are rooting for him to turn the company around.
“It’s an immense responsibility that we take seriously, and we are respectful of the process and responsibility to investors,” Tritton told Yahoo Finance Live.
Analyst have 3 Buy, 9 Hold, and 8 Sell ratings on BBBY.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre
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