Bed Bath & Beyond Inc. (BBBY) Accused of Misleading Shareholders
On October 2, 2019, Bed Bath & Beyond touted its updated fiscal 2019 full year financial outlook stating that “net sales are estimated to be around $11.4 billion and net earnings per diluted share are estimated to be between $2.08 and $2.13.” Later that day, Bed Bath & Beyond stated that the Company ” plans to aggressively reduce up to $1 billion of inventory at retail over the next 18 months.” Despite positive forward-looking statements, on January 8, 2020, the Company reported disappointing third quarter 2019 financials and withdrew its fiscal 2019 full year financial outlook. Then, on February 11, 2020, the Company announced its preliminary fourth quarter 2019 financial results, revealing a “5.4% decline in comparable sales driven by store traffic declines and inventory management issues” as well as “inventory within certain key categories… too low or out-of-stock during the period.” On this news, Bed Bath & Beyond’s stock price fell over 20% to close at $11.79 per share. The stock continues to decline.
