Can Bed Bath & Beyond Orchestrate a Turnaround Any Time Soon?
Bed Bath & Beyond (NASDAQ: BBBY) reported another dismal quarter. There was everything to dislike about the latest results -- a 9.0% year-over-year fall in revenue and bottom line losses for the quarter. Adjusted comparable sales declined 3.6% year over year, while the company's long-term debt remained stubbornly high at $1.49 billion, despite the $250 million cash infusion from a recent real-estate sale and leaseback transaction.
The company's share price has also tumbled from a high of $73 per share back in Jan. 2015 to around $15 as of this writing. However, the question is: Are investors throwing out the baby along with the bathwater? Could there be latent value in Bed Bath & Beyond's brand and reputation?
Recognizing the need to stem the bleeding, the company appointed a new CEO, Mark Tritton, last November to realign the business and restart its growth engine. Tritton comes with strong credentials. As former Chief Merchandising Officer at Target, he was instrumental in helping the retailer regain its footing with a focus on private-label offerings. But the task at hand seems daunting as Bed Bath & Beyond faces a severe crisis. Tritton himself admitted that the company has a persistent lack of purpose and has not been able to connect with younger consumers in its various product categories.
Source Fool.com
