Bed Bath & Beyond's stock plummeted to a new multi-decade low on Thursday after the company warned of continued economic challenges that are making it difficult to turn around its business.
It's not certain whether the measures will succeed.
Bed Bath & Beyond's stock plummeted in pre-market trading on Thursday to lows last seen in the late 1980's.
As a result of lower customer traffic and reduced levels of inventory, the New Jersey-based retailer expects sales to collapse in the current quarter.
Sue Gove blamed "inventory constraints" and "economic challenges" for the worse-than- expected performance.
The company stated that recurring losses in its latest quarters have contributed to "substantial doubt about the company's ability to continue."
The firm expects to post a loss of $385.8 million in its upcoming earnings report.
Bed Bath & Beyond, which has struggled to build a strong digital presence, has become one of the worst-hit brick-and- mortar retailers of the past decade. Early last year, shares of the firm began to surge, at one point more than tripling, as retail traders started to short the stock. The frenzy cooled off but once again intensified when billionaire Ryan Cohen, who has led an unsuccessful bid to turn around another retailer, disclosed a $120 million investment in the home goods store. Cohen sold his stake in the company in August.
Bed Bath & Beyond's share price collapsed from a closing high of $35 in January 2016 to less than a dollar today. Since the peak of the firm's share price in the summer of 2014, the firm has lost money. Since its peak two years ago, meme stock GameStop has plummeted.
Bed Bath & Beyond needs a reduction in stock price after a drop in revenue.
Bed Bath & Beyond stock rocketed after the billionaire chair of the company disclosed his investment.
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