Bed Bath & Beyond’s stock tanked by more than 24% during pre-market trading on Wednesday following an SEC Filing and a press release during which the company outlined its plan to manage the losses from its rapid decline in sales.
Initially, positive news was expected to be shared by the company during its investor presentation on Friday, with a press release indicating that the company would be receiving $500 million in funding to bring its current liquidity to $1 billion. The investor optimism that followed was soon quashed when the company revealed its plan to reduce its spending by more than $250 million during the fiscal year.
According to the SEC filing and press release, this plan includes the closure of 150 underperforming stores as well as the retrenchment of 20% of its corporate and supply chain workforce. Furthermore, the retail giant expects sales to fall by 26% this quarter compared to 2021.
“Board of Directors and management team have identified several strategies to implement impactful, organic changes to accelerate further growth and unlock the brand’s full potential including building on its digital and registry platforms, addressing additional age groups and expanding products and services,” the statement read.