Bed Bath & Beyond Proves It’s Still a Value Trap, Not a Value
The 2019 holiday shopping season is a wrap, and early indications are that the American consumer is not only alive and well but spending generously. Through November, the U.S. Census Bureau reported a 3.2% rise in retail sales over 2018, and initial reports from the likes of Amazon indicate that the busy post-Thanksgiving period could set new records.
There is no such cheer at Bed Bath & Beyond (NASDAQ: BBBY), though, and it isn't just an inability to get the right formula of digital and brick-and-mortar store presence that's the problem. Though it was late to the e-commerce party when it got serious about pursuing that channel a few years ago, it has made strides in modernizing its selling methods. Rather, it would seem in an ever-competitive retail world, shoppers are opting for merchandisers with a broader assortment of items -- both online and in-store. The company's fiscal 2019 third quarter report proves once again this is no value stock waiting to make a quick turnaround.
First, though, it's worth noting that Bed Bath & Beyond shares had rallied almost 140% at one point from the lows hit in the late summer of 2019. There's been optimism that new CEO Mark Tritton -- former chief merchandise officer at resurgent Target -- will be able to right the ship. Plus, until just recently, the home goods store was still profitable.
Source Fool.com
