The coronavirus pandemic continued to erase Bed Bath & Beyond Inc.’s profits, though surging digital transactions helped offset some of the pain as it restructures.
Comparable in-store sales dropped 15% in the quarter ended in November, the company said Thursday. Digital sales were up 77% in the three-month period, including 94% digital growth for the company’s Bed Bath & Beyond banner. The Union, N.J.-based home-goods retailer also operates the BuyBuy Baby, Harmon Face Values and Decorist brands.
Revenue slipped 5% year over year. The retailer attributed the revenue decline in part to store closures and divestitures of some of its brands.
Shares fell more than 10% Thursday morning to $18.77.
The pandemic has hit Bed Bath & Beyond at what was already a turbulent moment for the retailer. In 2019, the company hired Mark Tritton as its chief executive after the resignation of Steven Temares, the previous leader, amid investors’ criticism of its merchandising, inventory and e-commerce strategies. Earlier that year, the company had reported its first-ever annual loss.