Helen of Troy is "highly encouraged" by Bed Bath & Beyond's efforts to turn around sales, Chief Executive Officer Julien Mininberg said on a Q2 earnings call last week.
The seller of brands including OXO, Vicks and Hydro Flask had limited its business concentration with Bed Bath and Beyond in recent years amid the retailer's financial woes, Mininberg said on the call. Helen of Troy continues to manage its credit exposure.
Still, the company will continue to supply the struggling retailer with OXO brand kitchenware, which has faced sell-through declines as consumer demand declines. Mininberg said the business is closely working with Bed Bath & Beyond “at the highest levels,” and that he is encouraged by the retailer’s plan to place renewed emphasis on supplier relations.
"That said, we are highly encouraged by their public statement emphasizing their refocus on leading power brands like OXO that have been so important to driving traffic and sales," he said.
Bed Bath & Beyond has struggled with supplier relations in recent months, and reports surfaced in August that some vendors had restricted or stopped shipments to the retailer due to delayed payments.
The retailer has made progress in paying its invoices, thanks in part to a $500 million influx of cash it secured last month to stabilize its finances and "obtain vendor and supplier financing,” according to an Aug. 31 filing.
"Support from our suppliers, particularly our largest partners, remains solid and we remain committed to engaging with our vendor community intently," Bed Bath & Beyond Interim Chief Executive Officer Sue Gove said on a Sept. 29 earnings call.
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Kate Magill, Khareem Sudlow
