One-of-a-kind punch of prolonged inflation and more cautious consumer spending by 2022 have two retail stores — Party City Halloween costume destination (PRTY) and homeware retailer Bed Bath & Beyond (BBBY) — on the verge of extinction and no longer relevant in the age of digital shopping.
With bankruptcy possible for each, stock prices have seen excessive swings amid traders making speculative bets on their respective futures.
Shares of Bed Bath & Beyond jumped more than 25% before hitting the market on Wednesday after rising 20%. post-earnings recovery on Tuesday. Shares are down 17% through 2023.
Shares of Party City jumped more than 30% in pre-opening trading on Wednesday after the shares exploded 117% on Tuesday, making it one of the hottest code on Yahoo Finance platform.
This is the current state of play for each company.
Outdoor shower bed
Bed Bath & Beyond continues to struggle: The ailing retailer announced its long-awaited holiday quarter results on Tuesday and the picture is not good.
Here are seven numbers that stand out for Yahoo Finance:
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Net sales fell 33% year-over-year.
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Comparable digital sales fell by up to 33%.
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Bed Bath & Beyond’s comparative sales fell 34%.
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BuyBuyBaby banner comparable sales drop in the “low 20” percentage area.
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Adjusted operating loss was $225 million.
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There is only $153.1 million in cash on the balance sheet.
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150 stores are expected to remain closed.
In an earnings call that lasted about 10 minutes without analyst questions, Bed Bath & Beyond CEO Sue Gove outlined an additional $80 million to $100 million in cost-cutting. Besides the store closures, the company plans to lay off even more workers.
Recent Bed Bath & Beyond speak Bankruptcy plans are under consideration as the company tries to restore its woeful balance sheet after a disastrous year-end shopping season.
Gove repeat on Tuesday that all options remained on the table to save the retailer.
Pho eat and play
The retailer’s 2022 shipwreck slow-motion footage sped up the key Halloween sales season.
early November, Party City said total sales in the third quarter fell 1% year-over-year while gross profit margin fell 420 basis points. Party City posted an adjusted net loss of $157.2 million for the quarter. Sales in October increased only 3.9%.
Chief executive Brad Weston said: “We are focused on savings of $30 million, with work underway to achieve this target by 2023, including a 19% reduction in the workforce. the company’s workforce through a combination of removing positions and failing to fill a significant number of vacancies”. said at that time.
The Wall Street Journal reported on January 6 that the retailer was preparing to file for bankruptcy in an attempt to cut more than $1.3 billion in debt, sending the stock plunging.
On January 11, Bloomberg report the company is seeking debtor-owned capital (DIP) to keep its business afloat during bankruptcy. The report said the company could go bankrupt within weeks.
Party City operates 825 stores. The stock has lost about 97% in the past 5 years.
Party City did not return Yahoo Finance’s request for comment on the possible bankruptcy filing.
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Brian Sozzi is an editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and more LinkedIn.
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