Bed Bath & Beyond Just Proved How Very, Very Broken Retailers' Supply Chains Are
If there was any doubt Bed Bath & Beyond (NASDAQ: BBBY) is truly struggling to get its hands on enough inventory, CEO Mark Tritton just wiped it away. As he explained during the second-quarter conference call on Sept. 30, "[W]e do see supply chain pressure continuing, both in cost and lead time." Tritton backed up his comment by cautioning shareholders that same-store sales for the quarter currently underway would likely be flat, ultimately translating into full-year earnings of between $0.70 and $1.10 per share. Analysts had been modeling a fiscal 2021 bottom line of $1.32 per share.
And it's not just Bed Bath & Beyond. Shares of athletic apparel maker Nike (NYSE: NKE) also recently tumbled after the company dialed back its full-year revenue guidance due to supply chain woes. Department store chain Kohl's (NYSE: KSS) was recently downgraded by Bank of America to a rating of underperform with analyst Lorraine Hutchinson citing its struggle to get inventory into stores. Dollar Tree (NASDAQ: DLTR) is in the same proverbial boat, as are a slew of other retail chains.
Still, it's difficult to get a grasp on just how big the supply chain problem really is. Fortunately for investors, there's a metric that puts things in perspective. Unfortunately, this fiscal measure's condition may paint an even more alarming picture than what is currently expected for the retail industry.
Source Fool.com
