The bottom line was negatively impacted by a 25% decrease in net sales to $1.46 billion. Analysts had predicted higher earnings for the most recent quarter.
“In the quarter there was an acute shift in customer sentiment and, since then, pressures have materially escalated. This includes steep inflation and fluctuations in purchasing patterns, leading to significant dislocation in our sales and inventory that we will be working to actively resolve. The simple reality though is that our first quarter’s results are not up to our expectations, nor are they reflective of the Company’s true potential,” said Sue Gove who has been named the interim chief executive officer of the company.
Read management/analysts’ comments on quarterly reports
In a separate statement, the company announced the appointment of Sue Gove, an independent director and chair of the board’s strategy committee, as interim chief executive officer. Gove will be replacing Mark Tritton, who has stepped down as president and chief executive officer.