Bed Bath & Beyond Reports Worse Than Expected Q2 Results
Bed Bath & Beyond (NASDAQ:BBBY) reported its Q2 results, with EPS of ($3.22) coming in worse than the Street estimate of ($1.80). Revenue was $1.44 billion, missing the Street estimate of $1.47 billion.
The company provided its full-year outlook, expecting comparable sales to decline by approximately 20%. The company still expects to close 150 underperforming stores and is targeting at least 100 store closures by the end of 2022.
Analysts at Wedbush provided their views on the company following the earnings announcement. Against this backdrop, the analysts now estimate a $436 million adjusted EBITDA loss for 2022 (vs. prior $314 million loss) and free cash flow of ($1.1) billion (vs. prior ($620) million), driving liquidity to only around $740 million at the end of Q4. The analysts reiterated their Underperform rating and $5 price target on the company’s shares.
| Symbol | Price | %chg |
|---|---|---|
| BELI.JK | 472 | 0 |
| MAPA.JK | 825 | 1.21 |
| ACES.JK | 875 | -0.57 |
| BUKA.JK | 120 | -1.67 |
Bed Bath & Beyond Shares Surge 115% Since Q3 Announcement Despite Looming Bankruptcy
Bed Bath & Beyond (NASDAQ:BBBY) shares jumped more than 115% since the company’s reported Q3 results on Tuesday. This is despite the company reporting lower-than-anticipated financial results for Q3, with EPS coming in at ($3.65), significantly worse than the Street estimate of ($2.38). Quarterly revenue was down 33% year-over-year to $1.26 billion, compared to the Street estimate of $1.33 billion.
Retail investors caused the stock price to increase as they believe the company was a potential candidate for being bought out. The company stated it will cut additional workers as a means to lower expenses. This action follows the company's recent statement that it was considering filing for bankruptcy. The company announced on January 5th that the requirements for its exchange offer of unsecured notes were not fulfilled, and as a result, the company expressed doubts about its ability to remain a viable business due to current insufficient cash flow and lack of funds.
Bed Bath & Beyond Shares Plummet 23% on Disappointing Q1 Results
Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares plunged more than 23% on Wednesday following the company’s reported disappointing Q1 results, with EPS of ($2.83) coming in significantly worse than the Street estimate of ($1.32). Revenue was $1.46 billion, missing the Street estimate of $1.53 billion. Comparable sales dropped 23%, compared to the expected 19.4% decline.
According to the analysts at Wedbush, the company finds itself in an unenviable position as it faces steep market share losses, an overabundance of inventory, and dwindling cash reserves.
The analysts, who lowered their price target to $5 from $7 following the results, said that pushing too hard on an owned brand merchandising transformation proved hazardous for the company given very long order lead times compounded by external supply chain pressures.
The analysts believe the company would have been better served moving slower on merchandising, and first focusing on fixing its poor IT and supply chain systems.
Bed Bath & Beyond Shares Plummet 23% on Disappointing Q1 Results
Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares plunged more than 23% on Wednesday following the company’s reported disappointing Q1 results, with EPS of ($2.83) coming in significantly worse than the Street estimate of ($1.32). Revenue was $1.46 billion, missing the Street estimate of $1.53 billion. Comparable sales dropped 23%, compared to the expected 19.4% decline.
According to the analysts at Wedbush, the company finds itself in an unenviable position as it faces steep market share losses, an overabundance of inventory, and dwindling cash reserves.
The analysts, who lowered their price target to $5 from $7 following the results, said that pushing too hard on an owned brand merchandising transformation proved hazardous for the company given very long order lead times compounded by external supply chain pressures.
The analysts believe the company would have been better served moving slower on merchandising, and first focusing on fixing its poor IT and supply chain systems.
Bed Bath & Beyond Shares Up 5% Despite Expected Q3 Miss
Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares were trading around 5% higher Monday morning, despite the analysts expecting the company to post a Q3 miss on Jan 6.
Analysts at Wedbush provided their views on the company ahead of the quarterly results, stating they see limited drivers of upside on the print, anticipating a miss on both revenues and EPS.
The analysts believe that the number of negatives with signs of additional market share losses, will probably not be offset by growth opportunities in Baby items and marketplaces as well as more aggressive share repurchases potential.
While the company’s merchandising transformation has the potential to drive stronger unit sales at higher margins, the analysts are cautious, as they have seen limited signs of this paying off in 2021.
Bed Bath & Beyond Down 4% Following Q2 Results
The company attributed the trend deterioration in July and especially in August primarily to lower traffic as a result of resurging COVID-19 cases, but also noted missteps including shifting too much of its marketing from circular and coupon distribution to social media.
At the same time, accelerating freight costs through the quarter drove a gross margin miss, an issue that may pinch other retailers that have yet to report results for the August period.
