Earnings Preview: How Bad Was Bed Bath & Beyond's First Quarter?

There's no question that the upcoming earnings report is going to be awful, as the vast majority of the company's stores were closed for most of the period, which roughly corresponds to the months of March, April, and May. Moreover, Bed Bath & Beyond was barely profitable in the first quarter of its 2019 fiscal year, earning a meager $15.5 million adjusted profit. The key questions coming into Bed Bath & Beyond's earnings report are just how much money the company lost last quarter and whether management can give investors any comfort that earnings and cash flow will return to break even soon. Digital sales have surged in recent months, including 85% year-over-year growth in the first few weeks of April and roughly 100% growth in May. However, Bed Bath & Beyond was starting from a fairly weak base, with digital sales likely accounting for less than 20% of revenue a year ago.