Listen: Bed Bath & Beyond Is In Deep Trouble. And It Could Get Worse
"Way than I am. Let's move Yvonne to bed bath and beyond shares down nearly twenty percent today third quarter results for bed bath and beyond were bad and that they're you know what let's go into the result I because the guidance the move what they did with the guidance is the thing that I find a little surprising but tell me about the quarter So they achieved sales of two point. Eight billion dollars which was an eight point three percent comp sales decline which is just tragic and especially when you consider the downward trend that they've been on. It's just not what you WANNA see here so bed bath and beyond withdrew guidance for the remainder of the fiscal the school year which is never a good sign. There's n- There's never been a time when a company says we think this is going to be so amazing. We just want to surprise everyone at the end at though is going to be a negative surprise so they took it off the table in general. Yeah it seems like just the latest power move Mark Trenton. WHO's been CEO since the beginning ginning of November? So he hasn't even been running the company for this entire quarter I don't know it. It seems like it's very much his company even though he just got got there because he he was the one clearly who pulled the guidance for the rest of the year and he was very blunt about how dissatisfied he was with these results. Yeah his opening statement was. Let me be clear. These results are unsatisfactory. And then he continues. I think it's very clear that he's not happy. I do think His strategy and his sort of clean sweep and new approach bottoms up. They did this whole Deep market research into bed bath and beyond that they talked about the quarter so they're really starting from Ground Zero here and I think if there was ever a time to do it now is the time he's new. He has things to prove The company is already on a downward trajectory. So it's time to sort of hopefully get it moving back in the right direction. So I actually think his negativity was reassuring and a little bit positive Eh for this company absolutely and I'm not a shareholder but this is the most interesting this company has been in a long time and even with this drop. Today it's still deal up roughly eighty percent from the low. It hit last summer and I was going to talk about the stock price but given what you said about COSCO. Let's talk about the market cap. I mean bed bath and beyond is just a one point. Seven Billion Dollar Company. Is it crazy to think that if Martin gets his way and implements the changes that he wants to see. Is it crazy to think that this thing could double in the next year and a half two years. I mean we're just talking about one point seven to three point fourbillion right. I don't actually think that would be insane. I think you would need to see a lot of positive momentum for that to happen though so so you're not looking at today because there will absolutely be people today and I'm one of them who looked at it and thought point twenty percent. I kind of think I believe in this. CEO Maybe I should buy some shares. Because they're twenty percent cheaper but it sounds like you're saying not yet pump the brakes before you just jump in and buy today. Yeah I mean for the positive side. I would say the things that they do have going. I'm for them. They're number one and brand awareness for housewares and homegoods and a pretty strong leader and bedding and bath Generally people have a favorable impression of this brand of seventy nine percent of customers customers report feeling positively and they're starting to acknowledge really big significant strategic downfalls that they have so there's a lack back of clarity around purpose and value they talk about a software connection with millennials and generation Z.. And the fact that their entire digital footprint is really lacking so I think admitting a problem is the first step to correcting it and so I think that is positive for this quarter for them. We are admitting the problems. I just don't know that I you know they have pillars but there's no tangible steps taken yet and I'm not quite sure what those look like so even if you know maybe it'll happen slower than analysts want but just wait to see exactly what that plan is because I think the other thing to think about with bed bath and beyond is they actually on a variety of brands within ah on so they own World plus world market cost. Plus I think is the full name but world market is what people call it and then The Christmas tree shop in a variety of others. And I think there's just sort of some cleaning out that needs to be done like those are giant sales footprints and just generally generally Not Very differentiated from competitor. So I think there's a lot to be done here before we can say. This looks like a bargain. If anyone involved involved in those other brand and thank you for reminding because I always forget that about bed bath and beyond that they do actually have these other brand concepts"