Overstock.com, now Bed Bath & Beyond, eyes worst day in 15 years

Bed Bath & Beyond

06/09/2023 18:04

(Updates)
    ** Shares of online retailer Overstock.com  OSTK.O , or the
new Bed Bath & Beyond, fall as much as 27.7% to hit a near
three-month low of $19.83
    ** Stock last down 27%, on track to record worst day since
July 2008
    ** OSTK, rebranded as Bed Bath & Beyond after acquiring the
company's intellectual property assets in bankruptcy, sees Q3
revenue declining in mid-teens pct range
    ** Expects high-teens percent decline in avg order value for
Q3 ended Sept. 4, even as it says it added new customers;
projects gross margin of about 18%
    ** "Visits to our website have increased ... promotional
offers and expanded product assortment are resonating with
customers, and they love the refreshed mobile app" - CEO
Jonathan Johnson
    ** While co is adding customers, "promotions are much deeper
and advertising expense much higher," Jefferies analyst Jonathan
Matuszewski notes
        ** Investors are grappling with the No. 1 question since
OSTK acquired Bed Bath's IP: "Growth at what cost?" - Jefferies
  
    ** Including session's losses, OSTK up ~3% YTD 

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com))