Bed Bath and Beyond (NASDAQ: BBBY) on Wednesday reported a surprising holiday-quarter loss, as the company ran low on inventory and struggled to move merchandise out of congested ports and onto shelves.
CEO Mark Tritton said out-of-stock merchandise caused the company to miss out on about $175 million in fiscal fourth-quarter sales. That’s higher than the prior quarter, when supply chain bottlenecks cost the company about $100 million.
Tritton said in a recent interview that the home goods retailer is disappointed by its results. He said “major headwinds in the macro environment” have slowed the company’s turnaround efforts.
For instance, he said, moving goods costs more, and some best-selling items from national brands are in short supply due to missing components like microchips that go into vacuums. Plus, he said, the majority of its seasonal merchandise got stuck at ports and arrived late.
He said some of those challenges have carried into the current quarter.
Still, Tritton said, Bed Bath is making progress with its transformation. He said it is investing in technology, welcoming back customers with postcards and targeted emails and expanding its more profitable private label business.
Bed Bath has been on a bumpy ride, as Target veteran Tritton has sought to refresh the retailer’s brand with the launch of private label products, store remodels and closures of underperforming locations. Its stock has been drawn into meme-stock rallies along with AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME).
BBBY shares plummeted $2.04, or 11.4%, at Wednesday’s open to $15.93