Bed Bath & Beyond Inc (NYSE:BBBY) shares are trading lower after reporting second-quarter financial results that missed Wall Street expectations.

• Bed Bath & Beyond stock is feeling bearish pressure. Why are BBBY shares down?

Q2 Financial Results Miss Wall Street Expectations

The company reported an adjusted loss of 53 cents per share, missing consensus estimates of 26 cents per share. Quarterly net revenue totaled $361.16 million, up 28% year-over-year but falling slightly short of analyst estimates of $362.38 million. Net loss expanded to $39 million, impacted by $21 million in acquisition, restructuring and store-closure costs.

Turnaround Progress and $50M Cost-Saving Strategy

Despite missing estimates, the company achieved its second consecutive quarter of year-over-year revenue growth after 19 previous quarters of decline.

Management outlined strategic plans to consolidate operations and target over $50 million in annualized cost savings over the next 12 months by retiring non-performing assets and streamlining supply chains.

Rebranding to Neighborhood Intelligence and Moving to Nasdaq

The retailer also announced a corporate transformation to Neighborhood Intelligence, including a headquarters relocation to Nashville and a planned move to the Nasdaq under ticker symbol NXH.

CEO Comments on Business Transformation

Addressing the strategic direction, Marcus Lemonis, executive chairman and CEO, stated: “Our second quarter results show that the transformation of this business is taking hold. We are growing revenue and active customers while continuing to take cost out of the business and operate more efficiently.”

He continued, “As revenue ramps, we believe that over the next 12 months we can remove more than $50 million of annualized cost by bringing our businesses together onto one platform. We would not call it cost cutting; we would call it finishing the merger.”

BBBY Shares Slide Wednesday Afternoon

Bed Bath & Beyond shares were down 17.45% at $4.58 at the time of publication on Wednesday. The stock is near its 52-week low of $4.26, according to Benzinga Pro data.

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