Bed Bath & Beyond shares plummet as company warns of deeper financial troubles

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A Bed Bath & Beyond store is seen on June 29, 2022 in Miami, Florida.
Joe Raedle | Getty Images News | Getty Images

Bed Bath & Beyond warned Thursday that it is struggling to attract customers and drive sales, which is contributing to mounting losses and deeper financial troubles for the embattled home goods retailer.

The retailer on Thursday also issued a “going concern,” a warning that in the upcoming months it likely will not have the cash to cover expenses, such as lease agreements or payments to suppliers. The company said is exploring financial options, including filing for bankruptcy.

Shares of the company plummeted by 17% in pre-market trading after Bed Bath issued the financial filings.

Among its challenges, Bed Bath said fewer customers are coming to its stores and website and it has less merchandise to put on its shelves.

Net sales in the fiscal third quarter, which ended Nov. 26, are expected to be about $1.26 billion — a sharp drop from $1.88 billion in the year-ago period.

It anticipates a net loss of about $385.8 million for the third quarter, a nearly 40% jump in losses year over year. The quarterly losses include an approximately $100 million impairment charge, which was not specified.

The company will deliver full quarterly results and hold an earnings call on Tuesday.

This is breaking news. Please check back for updates.

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