BBBY reports earnings after the bell today, and investors are eager to see what the home furnishing’s giant has in store.

Bed Bath & Beyond Inc. is a chain of retail stores, operating under the names Bed Bath & Beyond, Christmas Tree Shops, Harmon and Harmon Face Values, buybuy BABY and World Market or Cost Plus World Market. The Company sells a range of domestics merchandise and home furnishings.  BBBY is currently trading around $62.76 in a 52-week range of $54.96 – 80.82. The company’s stock has been underperforming the market this year with shares declining 21.66% year to date.

Morgan Stanley’s home-furnishings survey conducted in August was released Monday, and found almost 80% of shoppers at Bed, Bath & Beyond in the past three months listed the company’s 20% off an-item coupon as what drove them to the store, much higher than other factors including selection or quality of merchandise. Analysts surveyed by FactSet estimated the company earned $1.14 a share, down from $1.16 a share. The retailer in June cut its profit outlook for the second quarter to $1.08 to $1.16 a share. Increased usage of coupons and online spending are expected to be hurt profit margins.

Historical data shows that for the past 8 earnings reports, BBBY has moved an average of 6.1%, with 6 out of 8 last reports moving the stock to the downside. The near-term at-the-money straddle is implying a 6% move in the stock, which is right in line with past performance.

Andrew Keene


Delivered to your inbox!

You should get your first video tomorrow!

Pin It on Pinterest

Share This