A rare ray of hope for floundering Bed Bath & Beyond has been Buybuy Baby.

However, the baby gear chain announced a significant quarterly sales decline on Thursday, raising questions and fueling worries that it may also be losing customers.

Comparable sales for Buybuy Baby fell by a high-teens percentage in the three months that concluded on August 27 compared to the same time last year. Comparable sales decreased by 28% year over year at Bed Bath & Beyond’s own locations and internet.

Last year, government stimulus measures, including child tax rebates, helped boost retail sales. Buybuy Baby had challenging comparisons in the quarter, according to interim CEO Sue Gove, who also noted that the company has maintained market position in the industry.

One of the parent company’s most valuable assets and strongest businesses has been Buybuy Baby. More Buybuy Baby locations have been added by the company as Bed Bath & Beyond trademark stores have closed. Ryan Cohen, co-founder of Chewy and chair of GameStop, was also interested in its banner and advocated for the sale of the better-performing one. It apparently also attracted interest from prospective purchasers.

Bed Bath has stated that it is focused on boosting sales and modernising the company, including the baby registry. As part of a truce with Cohen, Bed Bath agreed to investigate strategic options for Buybuy Baby. (Several other businesses, such as Walgreens and Kohl’s, have also cited a chillier market for mergers and acquisitions as a reason for delaying or cancelling possible purchases.) Since then, Cohen has sold all of his shares in Bed Bath.

On the discussion with investors on Thursday, Buybuy Baby Brand President Patty Wu stated that the banner intended to resume growth in the second part of the year. She mentioned goals to become the go-to location for parents both before and after pregnancy, citing various ongoing efforts.

According to her, Buybuy Baby will introduce its first private-label brand in November, which will feature reasonably priced clothing, furnishings, and accessories for infants and toddlers. It will sell well-liked holiday products, like family matching pyjamas, and provide relevant online resources, such advice on what travel accessories will make your flight or road journey during the holidays go more smoothly.

Additionally, she added, it would increase the variety of retail events and relaunch its baby registry in time for the start of next year.

We’re going to combine merchandise and teaching in our stores to create parenting centres, she declared.