Bed Bath & Beyond Earnings Preview: Is the Turnaround Progressing?
Shares of Bed Bath & Beyond (NASDAQ: BBBY) have made a huge comeback over the past year, as many investors have embraced the new management team's turnaround plan. By contrast, progress on the turnaround itself has been more limited, so far. In the first quarter of fiscal 2021, comparable sales increased just 3% compared to 2019 -- a terrible year for the company -- and Bed Bath & Beyond eked out a tiny adjusted profit of $0.05 per share.
Investors are hoping for significantly better results when Bed Bath & Beyond releases its second-quarter earnings report on Thursday. Here's what investors should keep in mind when looking at the company's results.
The No. 1 thing aiding Bed Bath & Beyond's turnaround attempt is that consumer spending on home furnishings has soared since the initial pandemic lockdowns began to ease last spring. Through the first seven months of 2021, sales at furniture and home furnishings stores jumped 22% compared to the same period in 2019, according to U.S. Census Bureau data.
Source Fool.com
