Bed Bath & Beyond (BBBY, $17.27) misses fiscal Q2 expectations
Bed Bath & Beyond (BBBY, $17.27) misses fiscal Q2 expectations
Bed Bath & Beyond reported its fiscal second quarter earnings that were lower than expected by analysts. The home goods retail company also cut its full-year profit outlook.
Bed Bath & Beyond’s adjusted earnings for the three months ending in August came in at 4 cents per share, well below the 52 cents per share expected by the Street.
Revenues fell -26% from the year-ago quarter to $1.98 billion, compared to analysts’ estimates of $2.06 billion.
Looking into fiscal year 2022, Bed Bath & Beyond predicts adjusted earnings in the range of 70 cents to $1.10 per share, down from its prior forecast of $1.40 to $1.55 per share. The company projects net sales in the range of $8.1 billion to $8.3 billion.
CEO Mark Tritton said that traffic slowed significantly in August and, therefore, sales did not materialize as expected. According to Tritton's statement, the spread of the Delta variant of COVID-19 led to a challenging environment for the company.
He also mentioned “ unprecedented supply chain challenges” in the industry that led to steeper cost inflation rising by month, especially later in the quarter, beyond the significant increases that were already anticipated by the company.
Notable companies
The most notable companies in this group are Amazon.com (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), PDD Holdings (NASDAQ:PDD), eBay (NASDAQ:EBAY), JD.com (NASDAQ:JD), Wayfair (NYSE:W), Chewy (NYSE:CHWY), Vipshop Holdings Limited (NYSE:VIPS), Revolve Group (NYSE:RVLV), Jumia Technologies AG (NYSE:JMIA).
Industry description
The internet retail industry includes companies that sell products and services through the Internet. With more and more consumers using online retailers, the companies have seen a big increase in the use of their services. Some of the companies in the group are focused on selling business-to-business products and services. Others sell business-to-consumer products and services. Internet retailers offer a wide variety of products like books, apparel, and electronics. Some companies even specialize in only one or two categories. One potentially critical factor for players to thrive in this space is the quality and speed of product delivery. This requires an investment in efficient distribution networks. Things like logistics are important factors in the success in the extremely competitive industry. For a company to stay relevant in the industry it must have effective pricing strategies and upgraded websites. The websites must be easy to navigate and engaging for customers. In addition to the revenues generated from straight sales, internet retailers can generate revenue from subscription fees and advertising. Amazon.com, Inc., Alibaba Group, and JD.com are some of the global leaders.
Market Cap
The average market capitalization across the Internet Retail Industry is 91.58B. The market cap for tickers in the group ranges from 622 to 2.79T. AMZN holds the highest valuation in this group at 2.79T. The lowest valued company is RBZHF at 622.
High and low price notable news
The average weekly price growth across all stocks in the Internet Retail Industry was -1%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was -12%. YJ experienced the highest price growth at 93%, while MI experienced the biggest fall at -63%.
Volume
The average weekly volume growth across all stocks in the Internet Retail Industry was 52%. For the same stocks of the Industry, the average monthly volume growth was 42% and the average quarterly volume growth was -43%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 54
P/E Growth Rating: 68
Price Growth Rating: 59
SMR Rating: 77
Profit Risk Rating: 93
Seasonality Score: 2 (-100 ... +100)
