By Elias Schisgall
Bed Bath & Beyond narrowed its first-quarter loss and returned to revenue growth in the first quarter, citing the results of the company's turnaround effort.
Chief Executive Marcus Lemonis said that the company has seen improvements in customer acquisition, engagement quality, and the performance of owned channels, adding that average order values have risen.
"The business is still in the process of rebuilding, but the trajectory is clear and reflects a model that is beginning to scale," Lemonis said in a letter to shareholders following the release of earnings for the first quarter on Monday.
Bed Bath & Beyond is also operating with its lowest cost structure in more than 12 years, he added. The company expects to drive $60 million in cost savings in the next nine months.
Lemonis said the company's recent agreements to acquire The Container Store and F9 Brands, the owner of Cabinets to Go and Lumber Liquidators, will feed into the company's efforts to expand its lines of business and build a unified technological system.
"Many of these businesses have strong underlying fundamentals but we believe have been constrained by duplication, overhead, and complexity," he said. "We look to preserve what works, remove what does not, and integrate those capabilities into a unified system supported by shared infrastructure and a single data layer."
Overseeing that technological system will be Kyla Robinson, whom the company said Monday would join as its Chief Technology Transformation Officer, reporting to President Amy Sullivan. Robinson most recently led digital commerce, product, and direct-to-consumer customer experience work for Spanx.
For the first quarter, the retailer logged a loss of $16.4 million, or 24 cents a share, compared with a loss of $39.9 million, or 74 cents a share, a year earlier.
On an adjusted basis, the company reported a loss of 25 cents a share. Analysts surveyed by FactSet were expecting a loss of 24 cents a share.
Revenue rose to $247.8 million, up from $231.7 million a year prior. Analysts were projecting $240.1 million in revenue. The company said the 6.9% increase in revenue was its first quarter of significant revenue growth in the past in 19 quarters.
Shares surged 28% to $6.83 in after-hours trading. The stock closed down 4.8% at $5.34, down 2.2% this year.
The company reported 3,951 active customers, down from 4,779 a year earlier, with the net revenue per customer up in the last 12 months rising to $268 from $260.
Bed Bath & Beyond is working to rebrand itself as the "Everything Home Company," an effort which has involved a push into home financing and retail brokerage, home services and products, and blockchain-based home technology.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
April 27, 2026 16:44 ET (20:44 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments