One of Bed Bath & Beyond’s (BBBY) most vociferous Wall Street detractors expressed concern that the company would not survive another holiday season.
Julie Strider, a representative for Bed Bath & Beyond, did not respond to a query from Yahoo Finance seeking comment on Chukumba’s viewpoint.
Anthony Chukumba, an analyst at Loop Capital, stated on Yahoo Finance Live, “All you need to know is that they’re just simply not relevant anymore” (video above). “Moreover, this was actually Custer’s Last Stand. The outcome will essentially be the same as it was for Custer. A year from now, we won’t be discussing Bed Bath & Beyond in the same way. There won’t be a Bed Bath & Beyond.”
Undoubtedly, few people on Wall Street would be startled if Bed Bath & Beyond folded after the holiday season of 2022.
In addition, the business hasn’t been able to recover under the leadership of new CEO Sue Gove, despite aggressive product discounts throughout the holiday season.
The retailer has struggled with declining sales, low store traffic, low cash levels, and inventory that doesn’t reflect client preferences all year. The board dismissed Mark Tritton, the CEO of Bed Bath & Beyond, earlier this year. As measures to save money and slash costs are in progress, other executives have also left.
In the second quarter of the fiscal year, comparable store sales decreased 26% from the same period the previous year due to a slowing economy and poor inventory quality. The company reported an operating loss of $168 million for the quarter as a result of its struggling top line and greater discounting.
The fact that Bed Bath & Beyond is still dealing with execution concerns and more wary customers does not help the situation. The retailer may have had a really bad holiday shopping season.
According to recent data from Jefferies analyst Jonathan Matuszewski, web traffic for Bed Bath & Beyond in the United States fell by an unexpected 19% in November. From Thanksgiving to Cyber Monday, sales decreased by around 25% compared to the previous year. In contrast, Bed Bath & Beyond stock has dropped 83% in 2022, significantly less than the 20% decline of the S&P 500.
- By this time next year, Bed Bath & Beyond “will be gone,” according to an analyst
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