Connect with us

Stock Markets News

Bed Bath & Beyond’s customer base has dropped by 5 million since 2021

Bed Bath & Beyond's customer base has dropped by 5 million since 2021

Bed Bath & Beyond Inc.’s customer base has dropped to 35 million from 40 million, a sign that the home goods retailer needs to put money into its business to replace the loss of core shoppers, UBS said in a note.

During the company’s annual meeting in June 2021, Bed Bath & Beyond Chief Executive Mark Tritton talked about the company’s 40 million customers. On the fourth-quarter earnings call on Wednesday, he discussed 35 million customers .

“I think during the COVID moment, we definitely saw in 2020 and 2021 a one-time customer that was searching digitally and that’s affected our customer count in the short term. I think second to that is we had store closures,” Tritton said on the call, according to a FactSet transcript.

“I think what we’re seeing is a stabilization of that base and we’re really now investing in 2022 in those customers both current and future[…] we’re recovering out of that and we have plans to fortify that 35 million and make them stickier and build more new customers across multi-generations.”

Read: Bed Bath & Beyond says Q4 revealed unforeseen weaknesses and the strength of its baby-focused chain

UBS said the retailer has lost older customers, and needs to transform in order to appeal to younger shoppers.

“We believe its core baby boomer customers are past their prime spending years and millennials seem less inclined to shop at Bed Bath & Beyond,” analysts wrote in a note.

“Importantly, to resolve these issues, we believe Bed Bath & Beyond will need to significantly accelerate investments in its business. We think it needs to build out a modern supply chain system with state of the art distribution center networks. Plus, to attract new customers, it not only needs the right merchandise but also to meaningfully invest in marketing to increase its share of voice among millennials.”

UBS rates Bed Bath & Beyond stock sell with a $12 price target, down $1.

Bed Bath & Beyond swung to a loss in the fourth quarter; the FactSet consensus was for a profit of 3 cents per share. Sales also missed Street expectations. The stock was down 3.4% in Thursday trading.

Shares have rallied 17.7% for the year to date, but have slumped 30% over the last 12 months.

A bright spot in the print was the buybuy Baby business, which has reached $1.4 billion in sales for the year. A March letter from Ryan Cohen and RC Ventures had valued the business at “multiple billions,” which analysts quickly disputed.

See: Kohl’s, Guess and other consumer companies are facing off with activist investors. One expert says it’s a signal of optimism

KeyBanc Capital Markets used the earnings information to estimate the value of the business at $1.0 billion to $1.5 billion, though analysts say they would need more detail.

“While the sale of Baby could support the stock in the short term, we ultimately believe fundamentals point to a lower share price, which remains the basis of our underweight rating,” analysts said in a note.

KeyBanc has a $10 price target on Bed Bath & Beyond shares.

Wells Fargo halved its price target to $10 from $20 and maintained its underweight stock rating after the earnings.

“Despite another activity campaign (calling for a streamlined turnaround and strategic alternatives), we view Bed Bath & Beyond as a structurally challenged asset, visibility remains low and the path ahead likely remains bumpy,” Wells Fargo said.

Content link

Splinterlands Decentralizes, SPS Validator Software Goes Open Source
NFT News10 months ago

Splinterlands Decentralizes, SPS Validator Software Goes Open Source

Rent-to-Own Homes Are Back With a Fintech Facelift,
Forex News10 months ago

Rent-to-Own Homes Are Back With a Fintech Facelift,

RNC withdraws from ‘biased’ Commission on Presidential Debates
Stock Markets News10 months ago

RNC withdraws from ‘biased’ Commission on Presidential Debates

Rent Prices Drop in San Francisco, Chicago During Pandemic
Finance News10 months ago

Rent Prices Drop in San Francisco, Chicago During Pandemic

Splinterlands Moves to Decentralize Validator Nodes with License Offering
NFT News10 months ago

Splinterlands Moves to Decentralize Validator Nodes with License Offering

How Much Should I Have in My 401(k) at 50?
Forex News10 months ago

How Much Should I Have in My 401(k) at 50?

Opinion: Twitter's board owes it to shareholders to accept Elon Musk's offer
Stock Markets News10 months ago

Opinion: Twitter’s board owes it to shareholders to accept Elon Musk’s offer

Elon Musk 'profited $150 million against the backs of common shareholders,' lawyer says
Finance News10 months ago

‘No board in America is going to take that number’

'The weight of this debt is crushing': I'm 74, and a retired speech-language pathologist with a student-loan debt of $200K. Am I obliged to pay it off?
Forex News10 months ago

‘Please help!’ It seems like I have been paying my child’s student loan forever. How much longer must I pay it off?

Wikipedia Community Pushes Back Against Crypto Donations
NFT News10 months ago

Wikipedia Community Pushes Back Against Crypto Donations

Twitter stock could crash 20% if board rejects Elon Musk's offer: analyst
Forex News10 months ago

Twitter stock could crash 20% if board rejects Elon Musk’s offer: analyst

Elon Musk’s Twitter bid may tempt retail investors to 'buy the rumor, sell the news' — Here's what financial advisers suggest instead
Stock Markets News10 months ago

Elon Musk’s Twitter bid may tempt retail investors to ‘buy the rumor, sell the news’ — Here’s what financial advisers suggest instead

Twitter Weighs Poison Pill to Prevent Musk From Increasing
Stake Significantly
Finance News10 months ago

Twitter Weighs Poison Pill to Prevent Musk From Increasing Stake Significantly

Here’s why Chiliz (CHZ) multi-team NFL partnership and Web3 expansion plan could be bullish
Cryptocurrency News10 months ago

Here’s why Chiliz (CHZ) multi-team NFL partnership and Web3 expansion plan could be bullish

Traders Move ETH out of Centralized Exchanges and into DeFi
NFT News10 months ago

Traders Move ETH out of Centralized Exchanges and into DeFi

North Korean Lazarus Group allegedly behind Ronin Bridge hack
Cryptocurrency News10 months ago

North Korean Lazarus Group allegedly behind Ronin Bridge hack

How Blockchain Bridges Became Hackers’ Prime Targets
NFT News10 months ago

How Blockchain Bridges Became Hackers’ Prime Targets

Elon Musk makes $43 billion cash takeover offer for Twitter By Reuters
Stock Markets News10 months ago

With Twitter in his sights, Musk creates new model of 21st century billionaire By Reuters

Archie Comics and Palm NFT Studio want fans to co-create the comic’s future series
Cryptocurrency News10 months ago

Archie Comics and Palm NFT Studio want fans to co-create the comic’s future series

how Hackatao is changing the face of PFPs – SuperRare Editorial
NFT News10 months ago

how Hackatao is changing the face of PFPs – SuperRare Editorial

Copyright 2020-2022 © All rights Reserved. CAK Strategic Consulting, LI.