Bed Bath & Beyond to Shrink Its Way to Better Profits
Beleaguered home goods retailer Bed Bath & Beyond (NASDAQ: BBBY) continues to maneuver its way toward a turnaround, announcing after Thursday's closing bell that it would be restructuring as a means of culling costs. The organization intends to reduce its employee headcount by about 500 workers. Those layoffs, in conjunction with related moves, is expected to reduce expenses by around $85 million per year.
Image source: Getty Images.
The organization could certainly use the extra cash right now. While its all-important holiday quarter won't end until Saturday, Feb. 29, Bed Bath & Beyond warned investors earlier this month that same-store sales in December and January (combined) were down on the order of 5.4%. That decrease jibes with analysts' outlooks for the fourth quarter in its entirety. They're calling for a 6.9% decline on companywide revenue, which would extend what's become a long-lived streak of fiscal deterioration. The retailer hasn't seen any annualized income growth since 2014, and sales appear to have peaked in 2018.
Source Fool.com
