![]() This bodes well for his new employer.įinally, know that Bed Bath & Beyond is stepping up its digital game in ways well beyond an expanded online shopping assortment. Tritton is largely credited with making Target's private labels the smashing success they are for the company today - they are estimated to drive around a third of its sales. Bed Bath & Beyond is planning more than 10 new "owned" brands for launch in its stores and online, meaning the company will develop these higher-margin products from the ground up rather than relying on selling the same goods that national brands supply to other retailers. It's also worth noting that in October, the retailer (finally) confirmed it would be diving deeper into the private label arena over the course of the coming year and a half. The company has named a new Senior Vice President of Merchandise Planning, a General Merchandising Manager, a Chief Brand Officer, and a Chief Merchandising Officer, just to name a few most of these are newly created roles. Part of the Bed Bath & Beyond revitalization plan announced in January of last year includes a rethinking of the very products found on stores' shelves. ![]() Tritton knows such niceties aren't going to dramatically win new customers, though, so he's thinking bigger, including thinking right down to the product level. ![]() For example, in September it unveiled same-day delivery of certain online orders, one-upping home goods rivals like Amazon, and putting pressure on other local shopping alternatives like Walmart. It's been lost in all the recent noise of politics and the coronavirus, but Tritton has already begun rebuilding Bed Bath & Beyond as a retailer that will remain relevant even once COVID-19 is in the rearview mirror. The $64,000 question is, of course: What can Bed Bath & Beyond plausibly do to actually turn earnings around next year and rev up sales in 2023? The answer is, more of what it's already doing. If the home goods retailer can just get through another rough year, results should start to improve in 2022 and beyond.ĭata source: Thomson Reuters. There's something big in the works for investors looking more than a year down the road, however. It's hardly thriving, and the outlook is far from thrilling. Adjusted EBITDA was still a razor-thin 1.6% of total sales. Yes, digital sales grew a whopping 94% year over year during the quarter ending in November, but overall sales growth was still only a little better than even. That's not an easy-to-believe premise given what investors can readily see. Worse before better, but better is on the radar still have plenty more regrouping to do, they're on the right track with the right ideas and the right team in place. The analyst community is collectively calling for a 12% slump in sales in the upcoming fiscal year to follow this year's 17% sales setback.Īs the old adage goes, though, you own a company for where it's going rather than where it's been. ![]() KeyBanc analyst Bradley Thomas says the world is on the verge of deprioritizing making nice at-home environments and reprioritizing experiences. And now, though lockdowns ultimately proved beneficial to the retailer's top line, analysts are doubting its future.
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