- BBBY stock fell 23.6% on Wednesday.
- Bed Bath & Beyond has reviews predicting bankruptcy after terrible earnings.
- BBBY stock is down 83% in the past 12 months, 67% since the start of the year.
Bed Bath & Beyond (BBBY) stock plunged 23.6% on Wednesday after reporting earnings that weren’t even close to Wall Street estimates. The home goods retailer reported adjusted earnings per share (EPS) of -$2.83. It missed the Wall Street consensus by an incredible 104%. Revenues were also dismal. At $1.46 billion, sales missed consensus by more than $46 million and were down 25% from the year-ago quarter.
BBBY Stock Earnings News
“Yuk!” is the least we can say, and the analyst community has not spared their disdain either. There was no question of putting lipstick on a pig this time. CEO Mark Tritton, a major asset from his former position at Target, was unceremoniously fired as fiscal first-quarter results were digested.
Chewy and GameStop fame Ryan Cohen pushed the board to fire Tritton, according to Bloomberg. Cohen, who owns nearly 10% of BBBY through an investment fund, wants the retailer to focus on national brands and cut spending, according to Bloomberg sources at the company.
Much of the analyst community believes there is no going back for BBBY shares at this point. The retailer has been haemorrhaging its customers for half a decade.
“Put a fork in it,” Loop Capital Markets’ Anthony Chukumba said after the earnings announcement.
Gerald Storch, CEO of Storch Advisors, was more blunt when speaking to Yahoo: “Bed, Bath & Beyond was a mistake in strategy. It’s not just that it’s too difficult to operate in this environment. They blamed it on the environment. They blamed everything else. But in reality, they even depromotional promotional activity during the holiday season. You know, it’s just a disaster in every way of sight.
Storch, a former CEO of several retailers including Toys R Us (which went bankrupt), said Tritton moved away from national homeware brands and instead started labeling its own products, which diverted the masses more quality-oriented.
BBBY Stock Forecast
BBBY has been in the meme camp for a while now, but the feedback has been awful. BBBY stock has lost 67% so far this year and 83% over the past 12 months. BBBY is now back near pandemic lows. In March 2020, at the onset of covid, BBBY stock was trading as low as $3.43. Although it is now close to $5, that is where it is heading. Expect BBBY to lose another third of its value if it doesn’t go bankrupt.
BBBY Weekly Chart
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