Bed Bath & Beyond's problems have little to do with Hurricane Harvey, analysts say
By Tonya Garcia, MarketWatch
"Flea market"-style stores and market share loss are issues the home retailer face
Bed Bath & Beyond Inc. has a number of problems but Hurricane Harvey isn't one of them, according to GlobalData Retail.
Bed Bath & Beyond (BBBY) reported a wide earnings per share miss late Tuesday (http://www.marketwatch.com/story/bed-bath-and-beyond-shares-slide-14-suntrust-notes-other-home-retailers-not-performing-as-poorly-2017-09-20), saying its 67-cents-per share EPS included a number of "unfavorable impacts," such as about 2 cents per share from Hurricane Harvey.
Shares are down 14.3% in Wednesday trading after the earnings announcement.
"Although Bed Bath & Beyond has made passing reference to Hurricane Harvey as one of the reasons for this quarter's weak results, we are not entirely convinced by this explanation," wrote Neil Saunders, managing director of GlobalData Retail. "As much as it is true that Harvey has been unhelpful, the fact remains that Bed Bath & Beyond's revenue and profit growth has been on a downward trajectory for some time."
There are other issues that GlobalData point out. One is their stores, where traffic "has fallen back sharply" according to Saunders.
"As much as the company has tried to improve things like store layouts and put more emphasis on gift lists, the fact remains that most of its shops are rather like well-organized flea markets and are neither the easiest nor the most inspirational places to shop," he wrote.