In its most recent quarter Bed Bath & Beyond (BBBY) reported revenue of $2.95 billion and EPS of $0.36. It missed on both revenue and earnings. Investors battered the stock, and BBBY is down by double digits post-earnings. I had the following takeaways in the quarter.

Same-Store Sales Ticked Down

Bed Bath & Beyond’s revenue was practically flat Y/Y. It missed on revenue by about $20 million. Had it met analysts’ expectations then revenue would have grown by about 1%. The company’s top line has been stagnant for several quarters now, as consumers continue to shun physical stores to shop online.

The company is trying to fend off Amazon (AMZN) or traditional retailers with burgeoning online sales like Target (TGT) and Walmart (WMT). This has wreaked havoc on Bed Bath & Beyond’s top line growth. In my opinion, the recent revenue miss was not unexpected. The struggle to gain traction on the top line will likely continue for several more quarters.

Comparable store sales decreased about 60 basis points. This is an improvement over previous quarters when same-store sales fell over 2%. I assumed comparable store sales declines in the 2% range was the best Bed Bath & Beyond could do, so a 60 basis-point decline feels sort of like a win.



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