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On March 20, Bed Bath & Beyond (NASDAQ:BBBY) stock dropped 21% to close at 81 cents after the company’s announcement that it was seeking shareholder approval for a reverse stock split.
The company, which reached an agreement with B Riley on Thursday, expects to use the net proceeds to help with strategic initiatives in fiscal 2023, such as investing in merchandise inventory, increasing store footprint and realigning cost structure.
Separately, Bed Bath said it expects fourth-quarter comparable sales to decline in the range of 40% to 50%, compared with analysts’ estimates of a 26.3% drop, according to Refinitiv data.
The retailer added it also expects operating losses to continue and fourth-quarter net sales to be about $1.2 billion, compared with estimates of $1.43 billion.
