Bed Bath & Beyond Gets Some Good News as It Fights for Survival
Earlier this month, Bed Bath & Beyond (NASDAQ: BBBY) reported dreadful results for the first quarter of fiscal 2020. Revenue plunged by nearly half due to the COVID-19 pandemic, while gross margin fell to just 26.7%, compared to 34.5% in the prior-year period. As a result, the struggling home-furnishings specialist posted an adjusted loss of $243 million and burned through $437 million of cash last quarter.
While the rest of 2020 probably won't be quite as dismal for Bed Bath & Beyond, the retailer was already grappling with a steady, long-term downtrend in store traffic. New CEO Mark Tritton has some good ideas for how to turn things around, but the pandemic has shortened the company's runway. Fortunately, investors have gotten a few pieces of good news this month with respect to buying time for a turnaround.
Bed Bath & Beyond announced this week that it had reached a settlement with 1-800-FLOWERS.COM that will allow the planned sale of its PersonalizationMall.com business to be completed.
Source Fool.com
