Union, N.J. – Clearing out bloated inventories, ‘adjusting’ future receipts, reducing provide chain prices and expanding national brands are on the agenda as Mattress Bathtub & Past appears to proper the ship.
Behind the numbers in Bed Bath & Beyond’s unfortunate Q1 results have been some extra dismal figures for key product classes. Throughout this morning’s investor name, executives mentioned gross sales within the bedding, bathtub and kitchen classes declined by double digits over March, April and Might. These three segments account for roughly 50% of the Mattress Bathtub & Past chain’s income.
Newly appointed interim CEO Sue Gove mentioned she is concentrating on near-term priorities. They embody:
- Focusing sources on driving visitors to shops and digital platforms
- Rethinking how Mattress Bathtub & Past is serving prospects so as to win again market share
- Reducing inventories
- Stabilizing the corporate’s provide chain, lowering prices and strengthening the stability sheet.
“I consider quite a lot of this work is finest accomplished in a back-to-basics mantra that prioritizes figuring out our buyer and delivering the expertise they deserve wherever they work together with us,” Gove mentioned. “We have now loads to do, and we should do it rapidly.”
The corporate has retained retail advisory agency Berkeley Research Group (BRG) to give attention to money, stability sheet and stock optimization.
Quarter-to-date comps as far in Q2 are trending within the adverse 20’s. For the primary quarter ended Might 28, comp gross sales have been down 23% on a consolidated foundation and down 27% at Mattress Bathtub & Past. This adopted a troublesome This fall, throughout which Bed Bath & Beyond’s comps tumbled in all five of its destination product categories.
The corporate expects to see some comp enchancment within the second half of the 12 months because it optimizes stock, together with with incremental clearance exercise.
Executives emphasised that the nameplate plans to stay suitably stocked for the Again-to-School and This fall vacation seasons.
Harriet Edelman, unbiased chair of the Mattress Bathtub & Past Inc. board of administrators, instructed traders that whereas the macro surroundings proper now presents plenty of challenges, the corporate acknowledges that it must make impactful modifications to enhance outcomes.
“We ought to be reaching a lot extra,” she mentioned.
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