Takeaways from BBBY strategic update via /r/wallstreetbets #stocks #wallstreetbets #investing


Takeaways from BBBY strategic update

  1. They secured financing commitments for more than $500 million of new financing, including its newly expanded $1.13 billion asset-backed revolving credit facility ("ABL facility") and a new $375 million "first-in-last-out" facility ("FILO facility") which means imminent bankruptcy is off the table.
  2. They reduced capital spending from $400 million to $250 million.
  3. They will close 150 lower-producing Bed Bath & Beyond banner stores.
  4. They won't sell BuyBuyBaby to save their necks as of now.
  5. They may issue up to 12 million shares to raise capital
  6. They still looking for a CEO

Financial Update (Interim)

At this time, the Company is providing the following interim financial update for the second quarter of fiscal 2022 ended August 27, 2022:

–        Net Sales of approximately $1.45 billion

–        Comparable Sales decline of approximately 26% compared to the second quarter of fiscal 2021

–     Free Cash Flow usage of approximately $325 million

Additionally, the Company is providing the following interim financial update for its fiscal 2022 expectations:

–        Comparable Sales decline in the 20% range driven by improvements in the second half of fiscal 2022 versus the first half of fiscal 2022

–        Adjusted SG&A expense approximately $250 million below last year reflecting cost optimization actions occurring in the second half of fiscal 2022

–      Capital expenditures of approximately $250 million versus the Company's original plans of approximately $400 million

source: https://bedbathandbeyond.gcs-web.com/news-releases/news-release-details/bed-bath-beyond-inc-announces-strategic-changes-strengthen-its

Submitted August 31, 2022 at 01:42PM by slimelmo91
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