![]() So, before scooping up its shares, it’s wise to wait for the results of the company’s transformation measures.Before struggling to survive in this intense competitive retail industry, Bed Bath & Beyond was considered a beast that other competitors had to bow their heads down. Also, the company faces intense competition in the retail space. However, these are expected to take time to materialize fully. Click here to see BBBY’s ratings for Sentiment, Value and Momentum as well.īetter than BBBY: Click here to access several other top-rated stocks in the Home Improvement & Goods industry.īBBY announced several measures to adapt to the ‘new normal’ and strengthen its digital presence. Moreover, it has a D grade for Stability.īBBY is ranked #46 out of 63 stocks in the A-rated Home Improvement & Goods industry. The stock has a C grade for Quality, in sync with its lower-than-industry profitability ratios. While revenue is expected to increase 34.6% for the about-to-be-reported quarter that ended on May 31, 2021, sales are expected to decline 11.8% in fiscal 2022. This is consistent with analyst expectations. ![]() Our proprietary rating system also evaluates each stock based on eight different categories. The POWR Ratings are calculated by taking into account 118 different factors with each factor weighted to an optimal degree. POWR Ratings Reflect Uncertain Near-Term ProspectsīBBY has an overall grade of C which equates to Neutral rating in our POWR Ratings system. Its trailing-12-month return on common equity and trailing-12-month return on total assets are also negative compared to the industry averages of 10.87% and 3.47%. The stock’s trailing-12-month net income margin is negative compared to the industry average of 4.25%. In terms of trailing-12-month EBIT margin, BBBY’s 0.39% is lower than the industry average of 7.28%. While the company’s plan seems to be ambitious, it’s still uncertain if it will be able to follow it through. BBBY also announced the completion of the sale of its Christmas Tree Shops retail banner, its institutional Linen Holdings business, and a distribution center located in Florence, NJ in November 2020 for cash proceeds of roughly $250 million. However, the company sold its Cost Plus World Market (CPWM) to Kingswood Capital Management in January 2021 to streamline its portfolio. It is also expected to remodel roughly 450 stores, enhance the digital-first, omni-always shopping experience, and introduce a modern, 360-degree approach to marketing and customer engagement. Here are the factors that I think could influence BBBY’s performance in upcoming months:īBBY launched its new private-label brand Nestwell on Maas part of its three-year transformation plan whereby it plans to launch at least eight new Owned Brands in fiscal 2021. Plus, it is also undergoing a transformation to strengthen its digital presence. ![]() ![]() BBBY faces intense competition from the likes of, Inc. Its gross profit came in at $825.49 million in the quarter, down 18.6% year-over-year. However, its net sales for the quarter declined 15.7% year-over-year to $2.62 billion. It reported 4% year-over-year growth in total enterprise comparable sales for the fiscal fourth quarter that ended February 27, 2021. The company delivered its 3rd consecutive quarter of comparable sales growth. However, as the economy gradually reopens, the pace of growth might slow down. Omni channel retailer Bed Bath & Beyond Inc.’s ( BBBY) shares soared 263.5% over the past year to close yesterday’s trading session at $27.26 as the demand for household goods such as bed linen, bath items, and kitchen textiles surged amid the COVID-19 pandemic. ![]()
0 Comments
Leave a Reply. |