Tags: pinched | shoppers | flock | BBBY

Pinched Shoppers Flock to Bed Bath & Beyond

By    |   Friday, 11 Nov 2011 10:20 AM

Pinched consumers have been doing their best, but many can no longer wait to stock up on basic household goods. That means soaring sales for discounters such as Bed Bath & Beyond (BBBY).

In the past eight quarters it has seen double-digit sales growth. BBBY has benefited from its position of being a big box store that sells everything one might need for the home but at prices that most consumers can afford.

Sales appear to only be getting stronger, with second quarter reporting in September of growth of more than a third year-on-year.

Investors have returned the favor in-kind by lifting the stock to its 52-week high in mid-October and keeping prices fairly steady since then, only coming down about a percentage point. Williams Capital rewarded the company with an outperform rating when it initiated analyst coverage recently with a target of $77, but Morgan Stanley tempered the excitement with an underweight recommendation.

The CEO may have taken his clue that the high had been reached when he sold 300,000 shares in mid-October. He sold at $60.23 (the high was $62.17 a week later), netting $8.42 million.

Double-dipping

BBBY is trying out a new strategy of folding its Harmon health and beauty aid stores, of which it has 40, into up to 15 percent of its Bed Bath & Beyond stores. So far the experiment seems to be working, keeping prices lower than in drugstores.

Analysts expect earnings to rise 24 percent for fiscal 2012, while 2013 may see another 15 percent. Bed Bath & Beyond is scheduled to report its third quarter earnings on Dec. 21.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
Companies
Pinched consumers have been doing their best, but many can no longer wait to stock up on basic household goods. That means soaring sales for discounters such as Bed Bath Beyond (BBBY). In the past eight quarters it has seen double-digit sales growth. BBBY has benefited...
pinched,shoppers,flock,BBBY
269
2011-20-11
Friday, 11 Nov 2011 10:20 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved