S&P 500   4,088.85 (+2.02%)
DOW   32,654.59 (+1.34%)
QQQ   306.17 (+2.59%)
AAPL   149.24 (+2.54%)
MSFT   266.82 (+2.03%)
FB   202.62 (+1.29%)
GOOGL   2,329.46 (+1.77%)
AMZN   2,307.37 (+4.11%)
TSLA   761.61 (+5.14%)
NVDA   181.77 (+5.29%)
BABA   91.99 (+6.37%)
NIO   16.63 (+14.30%)
AMD   102.47 (+8.73%)
CGC   5.89 (+2.79%)
MU   74.48 (+5.69%)
T   20.57 (+1.43%)
GE   76.40 (+2.37%)
F   13.53 (+3.68%)
DIS   108.64 (+3.29%)
AMC   12.90 (+10.16%)
PFE   51.34 (+1.32%)
PYPL   79.75 (+2.70%)
NFLX   190.56 (+2.17%)
S&P 500   4,088.85 (+2.02%)
DOW   32,654.59 (+1.34%)
QQQ   306.17 (+2.59%)
AAPL   149.24 (+2.54%)
MSFT   266.82 (+2.03%)
FB   202.62 (+1.29%)
GOOGL   2,329.46 (+1.77%)
AMZN   2,307.37 (+4.11%)
TSLA   761.61 (+5.14%)
NVDA   181.77 (+5.29%)
BABA   91.99 (+6.37%)
NIO   16.63 (+14.30%)
AMD   102.47 (+8.73%)
CGC   5.89 (+2.79%)
MU   74.48 (+5.69%)
T   20.57 (+1.43%)
GE   76.40 (+2.37%)
F   13.53 (+3.68%)
DIS   108.64 (+3.29%)
AMC   12.90 (+10.16%)
PFE   51.34 (+1.32%)
PYPL   79.75 (+2.70%)
NFLX   190.56 (+2.17%)
S&P 500   4,088.85 (+2.02%)
DOW   32,654.59 (+1.34%)
QQQ   306.17 (+2.59%)
AAPL   149.24 (+2.54%)
MSFT   266.82 (+2.03%)
FB   202.62 (+1.29%)
GOOGL   2,329.46 (+1.77%)
AMZN   2,307.37 (+4.11%)
TSLA   761.61 (+5.14%)
NVDA   181.77 (+5.29%)
BABA   91.99 (+6.37%)
NIO   16.63 (+14.30%)
AMD   102.47 (+8.73%)
CGC   5.89 (+2.79%)
MU   74.48 (+5.69%)
T   20.57 (+1.43%)
GE   76.40 (+2.37%)
F   13.53 (+3.68%)
DIS   108.64 (+3.29%)
AMC   12.90 (+10.16%)
PFE   51.34 (+1.32%)
PYPL   79.75 (+2.70%)
NFLX   190.56 (+2.17%)
S&P 500   4,088.85 (+2.02%)
DOW   32,654.59 (+1.34%)
QQQ   306.17 (+2.59%)
AAPL   149.24 (+2.54%)
MSFT   266.82 (+2.03%)
FB   202.62 (+1.29%)
GOOGL   2,329.46 (+1.77%)
AMZN   2,307.37 (+4.11%)
TSLA   761.61 (+5.14%)
NVDA   181.77 (+5.29%)
BABA   91.99 (+6.37%)
NIO   16.63 (+14.30%)
AMD   102.47 (+8.73%)
CGC   5.89 (+2.79%)
MU   74.48 (+5.69%)
T   20.57 (+1.43%)
GE   76.40 (+2.37%)
F   13.53 (+3.68%)
DIS   108.64 (+3.29%)
AMC   12.90 (+10.16%)
PFE   51.34 (+1.32%)
PYPL   79.75 (+2.70%)
NFLX   190.56 (+2.17%)

Bed, Bath & Beyond (NASDAQ:BBBY) Hits a Wall

Thursday, January 7, 2021 | Thomas Hughes
Bed, Bath & Beyond (NASDAQ:BBBY) Hits a WallThe BBBY Turnaround Hits A Wall

Bed, Bath & Beyond (NASDAQ:BBBY) emerged as a turnaround story over the summer and the fiscal Q2 results backed that thesis up. The problem now is the rebound and turnaround appear to have hit a wall in the form of lingering weakness in Mall-based retail sales. The core Bed, Bath, & Beyond franchise appears to be doing fine, it’s all those other little brands scattered throughout America’s malls that are weighing on results.

Bed, Bath & Beyond Whiffs In The 3rd Quarter

Bed, Bath & Beyond’s turnaround is focused heavily on eCommerce and those efforts are paying off. The company reported a 94% increase in eCommerce through the core BBBY channels with a 77% increase across the entire enterprise. The bad news is that eCommerce is not enough to offset the decline of in-store traffic the company is so reliant on.

The worst part, perhaps, is that net revenue not only fell on a YOY basis but decelerated from the previous quarter. The $2.62 billion in net consolidated revenue is down 5.1% from the previous year, 2.6% from the previous quarter, and missed the consensus by 430 basis points. Not good. In terms of comps, the company was able to produce positive comps in the range of 2.0% but that too missed the mark, and increasing costs offset the gains. The core BBBY brand saw its comps rise by 5.0%.

Moving down the report there is more good news than just the eCommerce sales but once again it is not enough to offset the decline of in-store traffic. The company’s gross margins improved 340 basis points and were aided by an improvement in SG&A expense to drive positive adjusted earnings. The downside is that GAAP earnings came in at -$0.61 and missed the consensus figure by over a dollar.


Looking forward, the company refrained from giving any FQ4 guidance but did offer an update on operations to-date. The company says that comps were positive across the network in December, the first month of the fiscal 4th quarter and then went on to reaffirm the full-year outlook. The company is expecting revenue in the range of $8.0 to $8.2 billion with EBITDA in a range slightly above the one previously offered.

Bed, Bath & Beyond Makes Improvements, Returns Capital

Bed, Bath & Beyond is having a hard time with its rebound but it is generating cash flow and free-cash-flow as well. The company produced $244 million in capital in the 3rd quarter and put it to good use. Not only is it working to streamline the portfolio but BBBY is also paying down debt and buying back shares. The company was able to pay down about $0.5 billion debt over the quarter, maintain $2.2 billion in liquidity, and buy back shares. REgarding the buyback, the company increased the buyback authorization to $825 million from the previous $675 million or about 30% of the market cap.

The Technical Outlook: The Shorts Have A Field Day With BBBY

Shares of BBBY fell more than 13% on the FQ3 report and may have farther to go if the shorts have anything to do with it. The short-interest was over 60% going into the report and may have something to do with today’s decline. The good news is that support appears to be strong at $17.50 and may lead to a buying opportunity if the shorts decide to cover. If not then we can expect to see this stock fall below the $17.50 support target a move to retest $15 or lower is very likely.

Bed, Bath & Beyond (NASDAQ:BBBY) Hits a Wall

Should you invest $1,000 in Bed Bath & Beyond right now?

Before you consider Bed Bath & Beyond, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Bed Bath & Beyond wasn't on the list.

While Bed Bath & Beyond currently has a "Sell" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

 


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Bed Bath & Beyond (BBBY)
1.3782 of 5 stars
$9.76+3.8%N/A-1.69Sell$12.92
Compare These Stocks  Add These Stocks to My Watchlist 

Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.