BBBY - Bed Bath & Beyond targets store closings cost savings after sales crumble

Bed, Bath & Beyond ( NASDAQ: BBBY ) reported comparable sales fell 32% in FQ3 to miss the consensus expectation for a drop of 23%. The retailer pointed to a weak sales performance driven by lower in-stock position of approximately 70% and an overall decrease in customer traffic.

A drop in adjusted gross margin to 22.8% of sales was said to reflect the continuation of incremental clearance activity related to discontinued Owned Brands merchandise and increased promotional activity.

Looking ahead, BBBY said it is delivering on an aggressive second half commitment of $250M in SG&A optimization or $500M in annualized savings. The retailer also said it is on track to achieve the 150 store closures that were previously outlined. BBBY also confirmed that it is working with advisors as it considers all strategic alternatives to accomplish near-term and long-term goals.

Shares of BBBY traded flat in premarket action on Tuesday. Even after a 23.66% pop on Monday, BBBY is down almost 50% over the last six weeks.

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