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

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Summary:
Bed Bath & Beyond posted dismal first-quarter fiscal 2014 results, wherein both top and bottom line fell short of the Zacks Consensus Estimate. The lower-than-expected earnings performance was due to a challenging retail environment, soft sales and increased costs because of the ongoing long-term investments. Moreover, the company provided a cautiously optimistic guidance for the second quarter and fiscal 2014. Though the near-term outlook appears to be bleak, we believe the company's strategic initiatives toward expanding its store base, investments in improving customer service and progress in online sales show potential. Based on a rebound in the housing market, we expect the company to grow at an impressive pace. Given the pros and cons, we 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 May 31, 2014, the company operated 1,015 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada 266 World Market or Cost Plus World Market stores 78 Christmas Tree Shop or andThat! stores 91 buybuy BABY stores and 50 stores under the names Harmon or Harmon Face Values, thereby bringing the total store count to 1,500. Additionally, in a joint venture, Bed Bath & Beyond operates 5 stores in Mexico City 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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