Bed Bath & Beyond (BBBY.US) shares managed to recoup all early losses caused by the weak quarterly results. The home goods retailer posted an unexpected loss caused by low inventories levels and warned about decreasing consumer demand.
- Company recorded a loss of $0.92 per share compared to profit of $0.40 per share, prior year. Meanwhile analysts projected profit of $0.03 per share. Revenue of $2.05 billion also came in below Wall Street estimates of $2.07 billion expected and reflects a 8% decline related to a planned reduction from non-core banner divestitures and a core sales decline of 14%.
- CEO Mark Tritton believes that macroeconomic factors including global supply chain disruptions, spread of the omicron variant and the "geopolitical turbulence weighing on consumer confidence," which altogether "uncovered more vulnerabilities than we could have foreseen."
- "The lack of available inventory to sell proved to be a continuing impediment to sales through the remainder of the fourth quarter and into the early part of fiscal 2022. Specifically, despite our overall inventory levels, products in transit, not available for sale or held at port remained abnormally high, particularly in key items," said Tritton.
- However, when it comes to the rest of the 2022 fiscal year, the company expects higher adjusted earnings for the second half, when compared to 2021 levels, but did not provide any specific guidelines regarding this matter.
- Recently Bank of America analyst Jason Haas downgraded BBBY.US stock to underperform with a price target of $9.50 warning "reality is about to hit hard for starry-eyed Bed Bath & Beyond shareholders."
Bed Bath & Beyond (BBBY.US) stock price launched today's session sharply lower, however buyers managed to regain control despite negative sentiment. Price bounced off the local support at $15.60 and is approaching major resistance at $19.50 which is marked with 23.6% Fibonacci retracement of the last correction. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
