While BBBY’s revenues in Q1 increased at existing stores for four consecutive quarters, adding confidence to BBBY’s rebound plan, the company still has a long way to go before it can claim to be on a sustainable growth plan. That said, the company still depends on its massive turnaround strategy as it has been struggling with margin pressure and declining store traffic amid competition from e-commerce and omnichannel competitors in recent years. We expect this digital sales growth trend to continue into Q2 as well. In addition, the company also partnered with the food delivery platform DoorDash to offer same-day delivery on store items across the U.S. In Q1, the company saw more than 38% of its total sales come from online orders. In fact, the Covid-19 crisis caused the retailer to rely on its e-commerce platform as people used their time at home to spruce up their interiors. Bed Bath & Beyond has shed all of its non-core segments in order to prioritize its survival in the retail market. We expect the home goods retailer’s stock to likely trade higher with revenues and earnings beating market expectations post the second-quarter results. We believe BBBY stock appears cheap at the current market price of around $14.īed Bath & Beyond (NASDAQ: BBBY) is scheduled to report its fiscal second-quarter results on Thursday, September 30th. Given the changes to our revenues and earnings forecast, we have revised our BBBY’s Valuation to $18 per share, based on $0.83 expected earnings per share and a 22x P/E multiple for fiscal 2021 - 25% higher than the current market price. We also expect EPS to come in at $0.83, up from a loss of $1.24 last year, compared to our prior estimate of $1.47. ![]() We now forecast BBBY’s Revenues to be $8.1 billion for fiscal 2021, down 11% y-o-y, compared to a prior forecast of a 9% y-o-y decline in revenues. We have updated our model following the fiscal Q2 release. It also expects an adjusted gross margin between 34% and 35% for the full year. BBBY lowered full-year guidance and now expects earnings to range between $0.70 and $1.10 on net sales of $8.1 billion to $8.3 billion. ![]() For the third quarter, Bed Bath & Beyond expects flat comparable sales, net sales between $1.96 billion to $2 billion, and adjusted EPS to range between even ($0.00) and $0.05.
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