Home goods retailer Bed Bath & Beyond (NASDAQ:BBBY) is scheduled to report third-quarter Fiscal 2022 earnings on January 10, before the market opens. High inflation and the weak housing market may have hampered the demand for the company’s home decor products, impacting top-line numbers in the third quarter.
Furthermore, BBBY’s inability to replenish inventory levels due to constrained credit limits could have impacted its sales during the holiday season.
BBBY expects the company to report net sales of $1.26 billion in the third quarter. The company said that its quarterly net sales were impacted by “lower customer traffic and reduced levels of inventory availability.”
According to the Street’s expectations, BBBY is expected to post an adjusted loss of $2.53 per share in Q3, compared with a loss of $0.25 per share in the year-ago quarter. Meanwhile, revenue expectations are pegged at $1.3 billion, representing a year-over-year decline of 31.6%.
Key Recent Developments
The company’s turnaround efforts, including store closures and the exchange of debt for equity, are less likely to have improved BBBY’s financial position. Recently, the company revealed that it is in the “early stages of planning for a Chapter 11 bankruptcy filing.”
Website Visits Reflect a Downward Trend
BBBY’s total website visits are a good indicator of user involvement on its platform. As per the TipRanks Website Traffic tool, total global visits to bedbathandbeyond.com and buybuybaby.com declined 26.5% sequentially in the fiscal third quarter.
The decrease in monthly visits could indicate that demand for the company’s products remained weak during the quarter.
Should You Buy BBBY Stock?
On TipRanks, analysts have a Strong Sell consensus rating on BBBY stock. This is based on three Sell recommendations. The average stock price forecast of $1.50 implies a 14.5% upside potential. Over the past six months, the stock is down 72.7%.
Ending Thoughts
BBBY’s performance could remain weak in the near term. This is because the key headwinds, such as a weak spending environment for consumer discretionary products, a subdued housing market, and liquidity constraints, are less likely to dissipate soon.
