Bed Bath & Beyond Inc. (NASDAQ: BBBY)
Bed Bath & Beyond News
Before the market opened yesterday, BBBY announced earnings that missed sales expectations and sent shares down in the premarket session. BBBY announced earnings per share at $1.09, in line with analyst expectations, but reported $2.95 billion in sales compared to analyst expectations of $2.97 billion. The company said in a prepared note “income in its fiscal third quarter faced currency headwinds, as well as a hit from taxes and an unfavorable comparison to an earlier quarter that benefited from a credit-card fee litigation settlement.” (MarketWatch) Currently analysts have an average price target of $57.44.
CEO Comments
“During the third quarter, we experienced a low single digit percentage decline in our comparable sales consummated in-stores. At the same time, in our customer facing digital channels, we are pleased that we have seen continued growth in both number of visits to our selling Web-sites as well as in the number of orders placed on both desktop and mobile. In our mobile channels, we set new record highs across all key performance indicators during the third quarter, including traffic, orders, sales, average order value and conversion. Global sales during the quarter increased more than 2.5x compared to the same period last year.” (NASDAQ)
BBBY Technicals
After reporting earnings, shares of BBBY slipped in the premarket session to $46.30 before getting a slight bounce and opening the day at $46.80. There was a quick bounce at the opening bell and then shares slowly sold off before closing the day at $46.51. BBBY has been on a rough patch the past twelve months as shares have slipped nearly 42% from highs of $79.64 in early December to lows as of yesterday at $46.37. There hasn’t been much consolidation anywhere on the chart as prices have trended consistently below the 50 day moving average and crossed the 200 day moving average back in late May. This is a very bearish looking chart and the latest earnings aren’t going to help it. We should see some support come in around the $45 level but not sure how it will hold up. Resistance will be met at $49.60, $50 and around $52.
Company Profile
Bed Bath & Beyond, Inc. is a chain of retail stores, which engages in the sale of wide assortment of domestic merchandise. The company and its subsidiaries operates under the names Bed Bath & Beyond, Christmas Tree Shops, Christmas Tree Shops andThat!, Harmon or Harmon Face Values, buybuy BABY, and World Market, Cost Plus World Market or Cost Plus. It sells sells a wide variety of domestic merchandise and home furnishings. The domestics merchandise includes categories such as bed linens and related items, bath items, and kitchen textiles. The home furnishings include categories such as kitchen and tabletop items, fine tabletop, basic house wares, general home furnishings, consumables, and certain juvenile products. The company was founded by Warren Eisenberg and Leonard Feinstein in 1971 and is headquartered in Union, NJ. (MarketWatch)
