Bed Bath & Beyond Inc has reported a significant improvement in its losses despite a decline in sales for the third quarter.

The company, which owns the Bed Bath & Beyond, Overstock and Buybuy Baby brands, posted a net loss of $4.5 million for the quarter ended September 30, a 93 per cent improvement year-over-year. 

Adjusted EBITDA loss also narrowed by 85 per cent to $4.9 million. Gross margin improved 420 basis points to 25.3 per cent.

Net revenue fell 17.4 per cent to $257 million during the period. Excluding the company’s exit from the Canadian market, net revenue decreased 13.2 per cent.

According to management, the company delivered its seventh consecutive quarter of measurable improvement towards profitability, driven by consistent progress across key financial and operational metrics.

“I am pleased with both the narrowing of the year-over-year revenue decline in the quarter and the stabilization of key metrics we achieved,” said Adrianne Lee, president and CFO of Bed Bath & Beyond Inc.

“We recognize the necessity to generate more revenue while maintaining our disciplined approach to profitability.”

Lee expects revenue trends to turn positive next year, which, along with other improvements, will position the company to achieve its profitability objectives.

Earlier this month, Bed Bath & Beyond Inc announced plans to launch a national franchise system as it focuses on operating a smaller footprint of corporate stores.