Shares of Bed Bath and Beyond (NASDAQ: BBBY) were on an upswing in pre-market trading on Tuesday as the domestic merchandise retailer outlined its cost savings plan even as sales tanked in fiscal Q3.
The company reported net sales of $1.259 billion, a fall of 33% year-over-year that was mainly driven by a decline in comparable sales of 32%. This was a big drop in sales as analysts were expecting a decline of 23%.
BBBY now expects $500 million in cost savings on an annualized basis and is on track to deliver around $250 million in sales, and general and administrative expenses (SG&A). Moreover, the retailer expects to close 150 stores by the end of this fiscal year.
Adjusted net loss came in at $3.65 per share which was wider than Street estimates of a loss of $2.53.
These disappointing results came even as the company has indicated that it could very well file for bankruptcy over the coming weeks.
BBBY stock has tanked by more than 85% over the past year.