The BofA analysts expect Bed Bath & Beyond’s management will soon announce more store closures and halt openings of its Buy Buy Baby stores.īut it’s not all grim. Key quote: “The company has been underperforming the industry and we think consensus estimates may be optimistic,” the analysts wrote.
Bank of America analysts expect that sales will drop another 20% in the past three months.
Plus: It’s not as if investors have forgotten about the last earnings report, when sales fell 22% from the previous year. Foot traffic is down as much as 30% from a year ago, even as competitors such as Walmart and Target have held steady. Customer rewards programs have been reduced or replaced. Remodeling projects have been canceled. Labor hours and store operating hours have been scaled back, the analysts say. Analysts there have been dropping in on stores to get a read on what’s happening on the ground. (A rep told my colleague Nicole Goodkind that no stores were “directed to adjust their air conditioning and there have been no corporate policy changes in regard to utilities usage.”) Here’s the thing: A new report from Bank of America says some stores have cut their air conditioning and other utilities to quickly lower expenses and make up for a slump in sales - an accusation BBBY HQ denied. And later, as you sipped a homemade cappuccino from your comically oversized porcelain mug - all courtesy of the BBBY - you’d remember you never actually got those sheets.īut these days, the store is something of a hot mess, literally, and that’s got analysts and investors nervous ahead of BBBY’s earnings report tomorrow. #Bed bath and beyond blue air tv
You walked in for new set of sheets and walked out with a closet organizer, an As Seen On TV abdominal roller and a 12-pack of clear glass food storage containers that were going to FINALLY level up your fridge game. To get it in your inbox, sign up for free, here.īed Bath and Beyond has always been a bit of a mess, and that was the point.
Editor’s Note: This story is part of CNN Business’ Nightcap newsletter.
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