Bed Bath & Beyond Reports 17% Revenue Decline in Third Quarter of 2025

Bed Bath & Beyond, Inc. reported a significant decline in financial performance for the third quarter of 2025, with net revenue of $257.2 million, down 17% from $311.4 million in the same period last year. The decrease was primarily attributed to a 20% drop in the number of orders delivered, which accounted for a revenue loss of approximately $63.6 million. This decline was partially offset by a 3% increase in average order value, contributing an additional $9.3 million to revenue. The company noted that reduced website visits, influenced by changing consumer spending preferences and macroeconomic factors, played a significant role in the decline.

Gross profit for the quarter was $65.2 million, representing 25.3% of revenue, compared to $66.0 million or 21.2% of revenue in the prior year. The slight decrease in gross profit was primarily due to lower revenue, which reduced gross profit by about $12.6 million, although this was partially mitigated by an improved gross margin that increased by 420 basis points year-over-year. The improvement in gross margin was attributed to lower carrier and return costs, as well as the discontinuation of operations in Canada.

In terms of operational metrics, the company reported a decrease in sales and marketing expenses, which fell to $36.1 million from $51.9 million, a reduction of 30%. This decrease was driven by lower performance marketing expenses and a reduction in brand advertising costs. Additionally, technology expenses decreased by $7.1 million, and general and administrative expenses were down by $5.6 million, reflecting ongoing efforts to streamline operations and reduce costs.

Bed Bath & Beyond also made strategic moves during the quarter, including the completion of a $101.7 million capital raise through an "at-the-market" public offering of common stock. The company ended the quarter with $167.4 million in cash and cash equivalents, an increase from $159.2 million at the end of the previous fiscal year. The company’s total liabilities decreased to $211.4 million from $239.2 million, primarily due to a reduction in current liabilities. Looking ahead, Bed Bath & Beyond aims to enhance its product offerings and customer experience while navigating the challenges posed by macroeconomic conditions and shifting consumer behaviors.