This Should Concern Bed Bath & Beyond Investors More Than Falling Sales

Bed Bath & Beyond (NASDAQ: BBBY) released its latest earnings results last week. And the big news was that its sales plummeted more than 20% as it missed expectations on both the top and bottom lines. The stock would fall on the results, but on a year-to-date basis, it remains up around 19% versus the S&P 500, which is down 8%. 

Some investors may be tempted to buy the stock despite the headwinds, expecting supply-related headwinds to resolve and the company to bounce back in future quarters. But that's only part of the problem for Bed Bath & Beyond, as there was a more troubling issue on its year-end earnings report: its cash burn.

Image source: Getty Images.

Continue reading


Source Fool.com