Bed Bath & Beyond loses 19% in the stock market following poor quarterly results
- Bed Bath & Beyond loses 19% in the stock market on Thursday following poor quarterly performance on Wednesday.
- Bed Bath & Beyond had announced plans of closing 60 of its stores in 2019.
- Bed Bath & Beyond owns two other American chains of Christmas Tree Shops and Buy Buy Baby.
- Bed Bath & Beyond has to adjust its portfolio to compete well against the rivals.
- Bed Bath & Beyond performed poorly in the stock market in 2019.
Share prices for Bed Bath & Beyond dropped by 19% on Thursday after the CEO announced unsatisfactory results on Wednesday that saw the company cut its outlook for fiscal 2019 in extended trading.
The CEO also announced that the company’s yearly strategic plans will be declared to the investors in the upcoming months, leaving them with little insight at this stage. Bed Bath & Beyond also released its performance results for the third quarter on Wednesday. Having missed the analysts’ estimate for earnings and revenue, the company blamed 2019’s late thanksgiving for the poor performance as it removed one week of holiday sales for the American chain of retail stores.
Bed Bath & Beyond Had Announced Plans Of Closing 60 Of Its Stores In 2019
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Two other American chains, Christmas Tree Shops, and Buy Buy Baby are also the subsidiaries of Bed Bath & Beyond. The company had previously announced its plans of closing 60 of its stores in 2019 that included 40 of the Bed Bath & Beyond itself. Following the performance results, however, the CEO announced that 20 of its stores will stay operational at the moment and maybe shut down at a later stage.
Following the earnings report, CEO Mark Tritton commented on the performance results and branded them as “unsatisfactory”. He further stated that the company aims at creating a sustainable business model targeted at securing long-term profitable growth.
Bed Bath & Beyond Has To Adjust Its Portfolio To Compete Against Other Major Retailers
Another factor to have contributed to poor quarterly performance by Bed Bath & Beyond include its larger competitors like Walmart, Amazon, and Target offering faster shipping and stable e-commerce platforms Since such retail giants offer a wide range of the same products as that of Bed Bath & Beyond, the company has to make broad adjustments in terms of its portfolio if it wishes to pose a challenge to its competitors.
In 2019, Bed Bath & Beyond failed to post significant improvement in the stock market. While share prices were seen trading around $15.23 in January 2019, the stock closed the year only marginally higher at $17.30. Prior to that, the stock had dropped as low as $7.40 in August. The $1.85 billion company is currently trading at $14.56. The record high for Bed Bath & Beyond was around $80 mark that it hit back in 2013.