Bed Bath & Beyond Earnings vs. Expectations
In the Q4 earnings reported by Bed Bath & Beyond, the company generated $2.619 billion in total revenue. The figure represents a hefty 16% drop in comparison to the same quarter in 2019, where the business earned $3.107 billion. The home goods company also disappointed analysts who projected Bed Bath & Beyond to reach at least $2.63 billion in total revenue.
Bed Bath & Beyond rebounded slightly through an increase in adjusted earnings per share, with the company pulling in $0.40 worth of earnings per share. This figure represents an increase of $0.02 per share in comparison to the same quarter the year before. More importantly, the business beat out analyst expectations heftily, with estimates of earnings only being at $0.31 per share.
The drop in revenue comes largely from the non-core banner business such as Christmas tree shops and Cost Plus World Market. Another major source of the decrease came from the permanent closure of several in-person retail locations as the retail company began shifting much of its business online. The success of its online business was a major highlight for Bed Bath & Beyond, with the banner website seeing a 99% digital comparative sales growth to the same quarter in 2020.
Future Plans and Stock Market Reaction
For the 2021 fiscal year, Bed Bath & Beyond remains fairly confident, with the annual outlook projecting around $8.2 billion in total revenue. The retail business will also launch eight new consumer brands and invest $400 million worth of capital expenditures toward growth and transformation.
Early morning stock market reactions to the Q4 report have not been kind to Bed Bath & Beyond so far. In fact, the company stock has fallen by around 8% in pre-market trading, resulting in a loss of over $2 per share. This will bring down stock prices to just over $25 per share, well off of their 2021 high.
In a statement released alongside the Q4 earnings report, President and CEO of the company Mark Tritton said, “Despite the challenges created by the COVID-19 pandemic, we relentlessly focused on taking purposeful and bold steps to transform our entire organization and remained true to our plans to rebuild our authority in Home and restore this iconic Company. Importantly, we prioritized the health and wellbeing of our associate teams, customers and communities and I am so proud of how our people have come together to deliver for one another and the millions of people who count on us.”
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.