- Telsey Advisory Group Analyst Cristina Fernandez repeated an underperform rating on the shares of Bed Bath & Beyond Inc BBBY with a target price of $3.00.
- When BBBY reports second quarter ’22 results on September 29, the analyst’s focus will be on the need for additional cash raising, September revenue to date, the pace of cost cutting, warehousing and progress on merchandising initiatives for national brands lie.
- Fernandez is expecting inventory to be high, expecting an 11% increase to $1.8 billion given the comparable sales decline and inventory receipts for the holiday season.
- Related: Bed Bath & Beyond bankruptcy ‘beneficiaries’ get analyst support as the holiday season approaches
- So far in September, Placer AI store traffic data shows continued year-on-year declines, with traffic at Bed Bath & Beyond (22%) versus (28%) in Q3 FY22, the analyst added.
- Fernandez notes that the recent debt hike gives Bed Bath & Beyond more time to adjust costs and rebalance its merchandise mix.
- However, the analyst remains concerned about the extent of the sales decline and believes it will be difficult to win back consumers in a weaker economic climate.
- also read: Was Bed Bath & Beyond a “pump and dump”? Ryan Cohen, late CFO named in shareholder lawsuit
- Price promotion: BBBY shares trade 1.17% lower at $7.19 on the last check Thursday.
- Photo via company
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