What happened Shares of Bed Bath & Beyond (NASDAQ: BBBY), an omnichannel retailer of home furnishings, are plunging over 26% Wednesday morning after the company released disappointing preliminary financial performance data for the first two months of its fourth quarter. So what For the first two months of Bed Bath & Beyond's fiscal 2019 fourth quarter, December 2019 and January 2020, the retailer reported a 5.4% decline in comparable sales. The disappointing sales data was driven by store traffic declines, inventory management problems, and increased promotions and markdowns -- a brutal combination for the company and its investors. Furthermore, the 5.4% comparable sales decline includes the shift of the Cyber Monday holiday week in this year's fourth quarter, while it was recorded in the prior year's third-quarter. When adjusting for that calendar shift, comparable sales for the first two months of this year's fourth quarter declined 13%. The retailer's gross margin during the first two months also declined roughly 300 basis points, due to promotional activity and markdowns. The company's sales, general, and administrative expenses (SG&A) as a percentage of net sales increased roughly 390 basis points from a combination of its sale-leaseback transaction announced in January 2020, and severance expense from its leadership shakeup announced in December 2019. Image source: Getty Images. Now what Bed Bath & Beyond President and CEO Mark J. Tritton did his best to put a positive spin on the data in a press release: We are experiencing short-term pain in our efforts to stabilize the business, including the pressures of store traffic trends coupled with our own executional challenges. However, we did achieve a notable positive shift in sales in our digital channels during this period, with growth of approximately 20%. I believe we can solidify this growth, while also addressing the broader stabilization of our business. Bed Bath & Beyond certainly faces challenges in its effort to return to sustainable growth in a competitive industry. It will need to rebalance its portfolio of products, cut costs, and improve its leadership group, all while navigating the continued evolution of e-commerce. Today's 26% decline emphasizes this turnaround will be difficult, but not much has changed for long-term investors who believe Tritton, who was instrumental in part of Target's turnaround, can reinvent Bed Bath & Beyond long-term. 10 stocks we like better than Bed Bath & BeyondWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Bed Bath & Beyond wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source