Bed, Bath & Beyond ( NASDAQ: BBBY ) announced preliminary results for FQ3, but warned that it will not be able to release its full 10-Q on time based on business performance for the three months ended November 26.
BBBY expects to report sales of approximately $1.259B for the quarter compared to sales of $1.878B year ago and the consensus mark of $1.4B. The retailer said the expected decline in sales versus last year is driven by lower customer traffic and reduced levels of inventory availability.
BBBY said it continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall. However, based on recurring losses and negative cash flow from operations for the nine months ended November 26, as well as current cash and liquidity projections, it has concluded that there is "substantial doubt" about the company's ability to continue as a "going concern."
Currently, BBBY is considering all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the company's business activities and strategic initiatives, or selling assets.
Shares of BBBY fell 17.22% in premarket action to $2.00. The stock was as high as +$20 for a few days in August.
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Bed, Bath & Beyond issues 'going concern' warning as it eyes strategic alternatives