Bed Bath & Beyond (BBBY, $9.88) misses same-store sales expectation; lowers full-year profit guidance
Bed Bath & Beyond (BBBY, $9.88) misses same-store sales expectation; lowers full-year profit guidance
Bed Bath & Beyond Inc. shares traded lower on Thursday, after the company posted weaker-than-expected same store sales over its fiscal second quarter, and lowered its full-year earnings guidance.
For the three months ending August, the home furnishings retail company’s adjusted earnings decreased -10.5% year-over-year to 34 cents per share, but was still 5 cents ahead of the Street consensus expectation.
Net sales fell -7.3% to $2.7 billion, slightly below analysts' estimates of $2.76 billion.
Same store sales declined -6.7%, compared to the - 5.4% decrease that investors had been expecting.
Looking into the full-year 2019, Bed Bath & Beyond is expecting earnings to range between $2.08 and $2.13 per share, down from its previous forecast of $2.11 to $2.20.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
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)
