The Hidden Reason Behind Bed Bath & Beyond's Demise
After a wild ride through August, Bed Bath & Beyond (NASDAQ: BBBY) stock is flailing again.
Shares fell after the company's business update last Wednesday failed to excite its investor base, and the latest update shows that there's a laundry list of challenges facing the home-goods retailer.
Comparable sales fell 26% in the latest quarter, and the company reported a loss of $325 million in free cash flow, meaning cash burn reached nearly $1 billion in the first half of the year. Management also announced cost-cutting measures, and a new financing package worth more than $500 million. But it's going to be difficult to turn around the business, especially given the macroeconomic climate, with interest rates rising and fears of a recession swirling.
Source Fool.com
