Bed Bath & Beyond Inc. (BBBY): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
We are disappointed with Bed Bath & Beyond's fourth-quarter fiscal 2014 results wherein its earnings per share declined 4.8% year over year due to weak sales and higher operating expenses. The company's top line fell 5.8% due to a severe winter in January and February, which forced several stores to remain closed for part of the day or full day. However, the company's future seems promising as we believe that the strategic initiatives toward expanding store base, investments in improving customer service and boosting online sales will improve its top and bottom lines. Furthermore, based on a rebound in the housing market, we expect the company to grow at an impressive pace. Given the pros and cons, we prefer to be on the sidelines and hence, maintain our Neutral stance on the stock.

Overview:

Bed Bath & Beyond Inc. is a leading operator of specialty retail stores in the U.S. and Canada. The company offers merchandise through Bed Bath & Beyond, Harmon, Christmas Tree Shops (CTS), andThat!, World Market, Cost Plus World Market, World Market Stores and buybuy BABY stores. Bed Bath's stores primarily span 20,000 50,000 square feet on an average, while some stores even exceed 80,000 square feet. The company provides a wide assortment of "everyday low price" products, primarily including domestic merchandise (such as bed linens, bath accessories, and kitchen textiles) and home furnishings (such as cookware, dinnerware, glassware and basic house ware). Bed Bath's product portfolio also includes food, giftware, health and beauty care items as well as infant and toddler merchandise.

As of Nov 30, 2013, the company operated 1,011 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada 269 World Market or Cost Plus World Market stores 76 Christmas Tree Shop or andThat! stores 86 buybuy BABY stores and 49 stores under the names Harmon or Harmon Face Values, thereby bringing the total store count to 1,491. Apart from this, the company operates 4 retail stores in Mexico City through a joint venture (JV) under its namesake brand.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: BBBY , CTS

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