11/22/2023 0 Comments Bed bath beyond coupon code 2016![]() ![]() The Motley Fool has no position in any of the stocks mentioned. The Must-Read Trump Quote on Social Securityġ0 Reasons Why I'm Selling All of My Apple StockĪdam Levine-Weinberg has no position in any of the stocks mentioned. The $16,728 Social Security Bonus You Cannot Afford to Miss Until the company shows clearer signs of progress toward a turnaround, Bed Bath & Beyond stock looks too risky relative to the potential reward.ģ Stocks That Are Absurdly Cheap Right Nowĥ Warren Buffett Principles to Remember in a Volatile Stock Market New tariffs on Chinese goods could further sap its profitability. That said, changes in consumers' shopping patterns will continue to pressure sales and earnings at Bed Bath & Beyond for the foreseeable future. Over the next few years, additional store closures and store remodels could help drive a turnaround in profitability. Furthermore, the company plans to close up to 40 stores this year as it rationalizes its brick-and-mortar footprint. The initial results in its test stores have been promising. The company is also piloting store format changes at Bed Bath & Beyond. Some of that improvement relates to the timing of payments, but federal tax reform and Bed Bath & Beyond's inventory reduction plan have also helped boost cash flow. Free cash flow has been quite strong year to date. This isn't to say that there are no bright spots. Depending on how far EPS falls in fiscal 2019, Bed Bath & Beyond stock's current multiple could still prove to be too generous. While that's a sharp discount relative to the broader market, the company does expect EPS to decline again next year. With its most recent plunge, Bed Bath & Beyond stock trades for a little more than seven times earnings. Yet sales growth there implies that the company's other retail concepts performed worse than the corporate average. Management did note that buybuyBABY is performing well and capitalizing on the liquidation of the competing Babies R Us chain. But management couldn't provide a straightforward explanation of why the company's core gross margin is still falling - or what might eventually drive a rebound there.Īnother point of contention was the lack of disclosure about the relative performance of Bed Bath & Beyond's various retail concepts. Some of this margin pressure is related to the cost of the relatively new BEYOND+ program, which provides free shipping and 20% off all purchases for $29/year. EPS is still plunging (which is in line with the company's forecast), but that's not necessarily a reason to believe that management is on track with its plan to return to earnings growth by 2020.Īn acceleration in the rate of gross margin erosion was particularly concerning in this regard. ![]() However, Wall Street analysts are increasingly losing patience with Bed Bath & Beyond. However, analysts had been expecting EPS of $0.50, on average. Management said that this EPS result was in line with its internal model. Even with the benefit of a lower tax rate and a lower share count (driven by stock buybacks over the past year), EPS fell to $0.36 from $0.67 in Q2 2017. The net result was that pretax profit plunged by 57%. Lastly, operating expenses ticked up as a percentage of revenue, driven by investments the company is making to try to return to growth. Unfortunately, Bed Bath & Beyond's core merchandise margin also deteriorated last quarter. Gross margin fell to 33.7% from 36.4% a year earlier, which management attributed to factors including higher coupon expense and an increase in shipping costs related to higher e-commerce sales. Meanwhile, profitability continued to erode. It also fell short of the average analyst estimate. This sales result was slightly worse than what management had expected. Comparable-store sales slipped 0.6% year over year. Bad news all aroundīed Bath & Beyond reported total sales of $2.94 billion for the second quarter of fiscal 2018, in line with the prior-year period. Nevertheless, investors should wait for clear signs of progress - or a much bigger discount in the stock price - before considering buying shares of this struggling retail giant. ![]() ![]() Management is also working on some promising strategies to stem the bleeding. Bed Bath & Beyond Stock Performance data by YCharts.īy some measures, Bed Bath & Beyond stock looks cheap. ![]()
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