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April 15, 2020, 9:05 p.m. EDT

Bed Bath & Beyond sells off One Kings Lane

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By Suzanne Kapner

Bed Bath & Beyond Inc. sold its One Kings Lane home décor unit but said a deal to sell another subsidiary failed to close as planned.

The home-goods retailer also said sales declines widened in recent months, as the coronavirus pandemic forced it to close most of its roughly 1,500 stores.

Net sales fell 6% to $3.12 billion for the three months ended Feb. 29. The retailer's net loss narrowed to $65.4 million from a loss of $253.8 million a year ago. The company said March sales fell 31%, and April sales were down 42% compared with a year ago.

Bed Bath & Beyond CEO Mark Tritton, who disclosed the One Kings Lane divestiture on a conference call on Wednesday, didn't give a price or name the buyer. Bed Bath & Beyond bought the online home décor company in 2014 for a price it deemed "nonmaterial." Two years earlier, One Kings Lane had been valued at nearly $1 billion.

Mr. Tritton said that a deal to sell the company's PersonalizationMall.com, a website that allows consumers to personalize items, to 1-800-Flowers.com Inc. for $252 million hadn't closed at the end of March as planned. He added that Bed Bath & Beyond had taken action to force 1-800-Flowers to close the deal.

Bed Bath & Beyond has closed all its stores except for its buybuy BABY and Harmon Face Values locations and furloughed most of its store associates and a portion of corporate staffers. It operates about 1,533 stores, including 994 Bed Bath & Beyond stores, 124 buybuy Baby locations and 55 Harmon stores.

"This time has been a test for all retailers," Mr. Tritton told analysts.

The company has converted a quarter of its Bed Bath & Beyond and Harmon stores into regional fulfillment centers and continues to fill online orders, which Mr. Tritton said are growing strongly.

Mr. Tritton said that 220 leases are up for renewal this year, which will give the company a chance to review its store footprint.

He added that the company is starting to plan for reopening stores but didn't yet know when that would occur.

The company's shares rose 15% in after-hours trading to around $5.

Mr. Tritton was named CEO last year, after an activist investor ousted most of its leadership, including the founders.

He has been trying to streamline the business and declutter stores.

Write to Suzanne Kapner at Suzanne.Kapner@wsj.com

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