Back to top

Analyst Blog

Bed Bath & Beyond Inc. (BBBY - Analyst Report) jumped on the bandwagon of troubled retailers that blamed the chilly, harsh winter weather for dampening the January and February sales results. The home furnishing retail chain lowered its projections for the fourth quarter on Friday as it reported preliminary comps growth of 1.7% for the quarter, below the company’s previous forecast of 2.0% to 4.0% growth.

Bed Bath & Beyond revealed that its performance in fiscal fourth quarter comprising the months of December, January and February, was severely impacted by the turbulent weather that forced 464 full-day closures and 1,923 partial day closures. The company held the bad weather responsible for pulling down comps by 2.0% - 2.5%, while it expects a 6 cents – 7 cents impact on earnings per share.

The company expects to report fourth-quarter earnings per share of $1.57 - $1.61 against $1.60 - $1.67 projected earlier. The current Zacks Consensus Estimate for the fourth quarter stands at $1.65 per share, which may see a downward revision in the next few days.

Excluding the impact of the weather, the company remains positive on its ability to have delivered its previously indicated sales and earnings targets. Additionally, the company highlighted that it continues to smoothly progress with its omnichannel initiatives as well as its long-term strategic plans.

The company is scheduled to report its fourth quarter and fiscal 2013 financial results on Apr 9, 2014.

The polar vortex that hit most parts of the U.S. in January and continued into February prevented shoppers from stepping out of their homes and ultimately knocked down the business of retailers. A major loser due to the inclement weather was Gap Inc. (GPS - Analyst Report), which posted a 7% comps decline for the month of February.

However, some others including Costco Wholesale Corp. (COST - Analyst Report) and L Brands Inc. (LB - Analyst Report) emerged winners gaining from the improved weather in late February, which coincided with the government’s tax refunds that boosted the purchasing power of consumers. Comps for the above mentioned companies rose 2% each for the 4 weeks ended Mar 1, 2014.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
HI CRUSH PA… HCLP 68.05 +4.74%
CTPARTNERS… CTP 12.91 +3.12%
QIHOO 360 T… QIHU 90.56 +3.11%
HOLLYSYS AU… HOLI 22.85 +2.97%
BONANZA CRE… BCEI 61.57 +2.94%