Like Bed Bath & Beyond, Bob's Discount Furniture also struggled as consumer sentiments shifted away from home goods and demand dipped after the sector's massive pandemic boom. Moody's noted the company is in a"cyclically vulnerable sector," though benefits from"a moderate level of leverage.
In November 2022, the company reported a third-quarter loss of $508 million, prompting shares to drop by 50%,Earlier this year, the company cut 2,500 jobs, an estimated 12% of its staff, part of an effort to find"a better balance between its sales volumes and staffing levels,"Moody's analysts noted the company is currently"reflecting very weak credit metrics, persistent lack of profitability, and negative free cash flow generation.
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