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Factors Likely to Hurt Bed Bath & Beyond's (BBBY) Q3 Earnings
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Bed Bath & Beyond Inc. is slated to release third-quarter fiscal 2022 results on Jan 10. This leading specialty retailer is expected to deliver sales and earnings declines in the to-be-reported quarter.
The Zacks Consensus Estimate for the company's fiscal third-quarter earnings is pegged at a loss of $1.96 per share, suggesting a 684% decline from the year-ago quarter's reported figure. The loss estimate has widened by 1.6% in the past 30 days. The consensus mark for fiscal third-quarter sales is pegged at $1.43 billion, suggesting a 23.6% decline from the prior-year reported number.
We expect the company’s fiscal third-quarter total revenues to decline 23.1% year over year to $1,444.5 million. We expect the company to post a loss of $1.78 per share, whereas it reported a loss of 25 cents in the prior-year quarter.
In the last reported quarter, the company delivered an earnings surprise of 102.5%. Also, the company has a trailing four-quarter negative earnings surprise of 1,638.4%, on average.
Key Points to Note
Bed Bath & Beyond has been reeling under sluggish sales, the inability to compete with other retail giants and a shift to private brands. This drove away many loyal customers who were looking for their favorite brands. Continued failed attempts to bring in-demand styles onto its shelves and efforts to launch more store-branded products went for a toss.
Meanwhile, it collaborated with suppliers and undertook productive merchandise plans and store fleet optimization plans. However, these efforts failed to bear fruits.
The ongoing inflation, which led to consumers cutting down on discretionary spending, has added to its woes. The company continued to witness industry-wide supply-chain constraints. Consequently, aggressive clearance activity in order to right-size its inventory and the negative impact of supply-chain costs are likely to have dented margins in the fiscal third quarter.
In a recent development, management gave a sneak peek of its fiscal third-quarter results. The company leveraged the liquidity gained from the holiday season to pursue higher in-stock levels. The fiscal third quarter has been impacted by inventory constraints and reduced credit limits, which led to lower levels of in-stock presentation within the assortments.
Based on lower customer traffic and reduced levels of inventory availability, management anticipates net sales of $1.26 billion, whereas it reported $1.88 billion in the year-ago period. The company envisions a net loss of $385.8 million, including impairment charges of $100 million, whereas it reported a loss of $276.4 million in the year-ago quarter.
However, it has been on track with turnaround plans, with an increased focus on merchandising and inventory, enhancing digital and omni-capabilities, and strengthening its financial position. It has been trying to improve its cash position and mitigate potential liquidity shortfall. Also, the company has started to bring back some of the well-known national brands, such as Oxo, Ninja and SodaStream, as part of its turnaround efforts.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Bed Bath & Beyond this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Bed Bath & Beyond currently has an Earnings ESP of -54.38% and a Zacks Rank #5 (Strong Sell).
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Dillard’s (DDS - Free Report) currently has an Earnings ESP of +0.23% and sports a Zacks Rank #1. DDS is likely to register top and bottom-line growth when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.12 billion, which suggests growth of 0.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard’s quarterly earnings has moved up 0.2% in the past 30 days to $8.87 per share, suggesting a decline of 43.4% from the year-ago quarter's reported number. HIBB has a trailing four-quarter negative earnings surprise of 144.2%, on average.
Boot Barn Holdings (BOOT - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank of #2. The company is expected to register top-line growth when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for BOOT's quarterly revenues is pegged at $513.6 billion, which suggests growth of 5.7% from the prior-year quarter's reported figure.
The Zacks Consensus Estimate for Boot Barn’s quarterly earnings has been unchanged at $1.81 in the past 30 days, suggesting an 18.8% decline from the year-ago reported number. BOOT has a trailing four-quarter earnings surprise of 11.7%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +0.07% and a Zacks Rank #2. FIVE is anticipated to register top and bottom-line growth when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.1 billion, indicating an improvement of 10.4% from the prior-year quarter.
The Zacks Consensus Estimate for Five Below’s bottom line has been unchanged in the past 30 days to $3.03 per share. The consensus estimate suggests growth of 21.7% from the year-ago quarter's reported figure. FIVE has a trailing four-quarter earnings surprise of 26.3%, on average.
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Factors Likely to Hurt Bed Bath & Beyond's (BBBY) Q3 Earnings
Bed Bath & Beyond Inc. is slated to release third-quarter fiscal 2022 results on Jan 10. This leading specialty retailer is expected to deliver sales and earnings declines in the to-be-reported quarter.
The Zacks Consensus Estimate for the company's fiscal third-quarter earnings is pegged at a loss of $1.96 per share, suggesting a 684% decline from the year-ago quarter's reported figure. The loss estimate has widened by 1.6% in the past 30 days. The consensus mark for fiscal third-quarter sales is pegged at $1.43 billion, suggesting a 23.6% decline from the prior-year reported number.
We expect the company’s fiscal third-quarter total revenues to decline 23.1% year over year to $1,444.5 million. We expect the company to post a loss of $1.78 per share, whereas it reported a loss of 25 cents in the prior-year quarter.
In the last reported quarter, the company delivered an earnings surprise of 102.5%. Also, the company has a trailing four-quarter negative earnings surprise of 1,638.4%, on average.
Key Points to Note
Bed Bath & Beyond has been reeling under sluggish sales, the inability to compete with other retail giants and a shift to private brands. This drove away many loyal customers who were looking for their favorite brands. Continued failed attempts to bring in-demand styles onto its shelves and efforts to launch more store-branded products went for a toss.
Meanwhile, it collaborated with suppliers and undertook productive merchandise plans and store fleet optimization plans. However, these efforts failed to bear fruits.
The ongoing inflation, which led to consumers cutting down on discretionary spending, has added to its woes. The company continued to witness industry-wide supply-chain constraints. Consequently, aggressive clearance activity in order to right-size its inventory and the negative impact of supply-chain costs are likely to have dented margins in the fiscal third quarter.
In a recent development, management gave a sneak peek of its fiscal third-quarter results. The company leveraged the liquidity gained from the holiday season to pursue higher in-stock levels. The fiscal third quarter has been impacted by inventory constraints and reduced credit limits, which led to lower levels of in-stock presentation within the assortments.
Based on lower customer traffic and reduced levels of inventory availability, management anticipates net sales of $1.26 billion, whereas it reported $1.88 billion in the year-ago period. The company envisions a net loss of $385.8 million, including impairment charges of $100 million, whereas it reported a loss of $276.4 million in the year-ago quarter.
However, it has been on track with turnaround plans, with an increased focus on merchandising and inventory, enhancing digital and omni-capabilities, and strengthening its financial position. It has been trying to improve its cash position and mitigate potential liquidity shortfall. Also, the company has started to bring back some of the well-known national brands, such as Oxo, Ninja and SodaStream, as part of its turnaround efforts.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Bed Bath & Beyond this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Bed Bath & Beyond currently has an Earnings ESP of -54.38% and a Zacks Rank #5 (Strong Sell).
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Dillard’s (DDS - Free Report) currently has an Earnings ESP of +0.23% and sports a Zacks Rank #1. DDS is likely to register top and bottom-line growth when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.12 billion, which suggests growth of 0.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dillard’s quarterly earnings has moved up 0.2% in the past 30 days to $8.87 per share, suggesting a decline of 43.4% from the year-ago quarter's reported number. HIBB has a trailing four-quarter negative earnings surprise of 144.2%, on average.
Boot Barn Holdings (BOOT - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank of #2. The company is expected to register top-line growth when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for BOOT's quarterly revenues is pegged at $513.6 billion, which suggests growth of 5.7% from the prior-year quarter's reported figure.
The Zacks Consensus Estimate for Boot Barn’s quarterly earnings has been unchanged at $1.81 in the past 30 days, suggesting an 18.8% decline from the year-ago reported number. BOOT has a trailing four-quarter earnings surprise of 11.7%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +0.07% and a Zacks Rank #2. FIVE is anticipated to register top and bottom-line growth when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.1 billion, indicating an improvement of 10.4% from the prior-year quarter.
The Zacks Consensus Estimate for Five Below’s bottom line has been unchanged in the past 30 days to $3.03 per share. The consensus estimate suggests growth of 21.7% from the year-ago quarter's reported figure. FIVE has a trailing four-quarter earnings surprise of 26.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.