Bed bath beyond contact update#

Operational issues were not limited to our inventory. This resulted in approximately $100 million in lost sales versus demand or a mid-single-digit impact to the quarter and an even higher impact on December. The customer experience was compromised as strong demand wasn't met with strong product availability. Issues in receipt flow and on-shelf availability affected our top 200 items such as kitchen appliances and personal electronics, as well as our key categories such as bed and bath. Unfortunately, despite strong customer demand, operational challenges such as vendor constraints, locked inventory once in our position, and a currently illiquid legacy infrastructure impacted our ability to drive further improvement in sales trends. And in November, we drove improvement and arrested comp decline. Overall, our inventory position remained healthier with greater relevancy compared to last year. In preparation from the holiday season and against the backdrop of the challenging supply chain environment, we fortified our plans to secure the right breadth and depth of product. More specifically, during the third quarter, our revenue momentum was below our expectations with net sales of $1.9 billion and a 7% comp decline.Īs shared with you previously, we experienced a slower start to sales in September and October. We continue to execute our long-term strategic initiatives to modernize our infrastructure and enhance our agility in any future operating environment.

These conditions led to sales that demonstrated near-term volatility despite progress on our multiyear transformation. While we effectively offset higher freight costs than being at the core and global supply chain pressures, increasing inventory disruptions impacted our ability to meet demand during the holiday season.

Unprecedented macro forces continue to permeate operating conditions, leading to a near-term versus long-term bifurcation in our performance. During this first year of our comprehensive transformation, our most recent results demonstrate the complexities of executing a long-term turnaround plan while managing a business in a highly unpredictable current short-term environment.

We hope you had a safe, healthy holiday season during these turbulent times. Thank you, Susie, and good morning, everyone.

Bed bath beyond contact update#

The company undertakes no obligation to update or revise any forward-looking statements. Please refer to our most recent periodic SEC filings for more detail on these risks and uncertainties, including the risk factors section in our annual report on Form 10-K and our quarterly reports on Form 10-Q. All such statements are subject to risks and uncertainties that could cause actual results to differ materially from what we say during the call today. This conference call and the slides we refer to may contain forward-looking statements, including statements about or references to our outlook regarding the company's performance, our internal models, and our long-term objectives. Before we begin, let me remind you that our fiscal 2021 third quarter earnings release and slide presentation can be found in the investor relations section of our website at and as exhibits to our related Form 8-K.

Joining us today are Mark Tritton, our president and CEO and Gustavo Arnal, our chief financial officer. Welcome to our fiscal 2021 third quarter earnings call.