Yahoo Finance’s Josh Schafer breaks down Bed Bath & Beyond's earnings and why it was one of the key "lowlights" of the season.
Video Transcript
- All right. Josh Schafer continuing with the superlatives. Now we've got one of my favorites, class clown. Who is it?
JOSH SCHAFER: All right. We're going to have a little fun with this one. The class clown is Bed Bath & Beyond. And there was a time this quarter where I think some people probably thought that Bed Bath & Beyond was going to file for bankruptcy, maybe even in this release on January 10. That did not happen. Their last quarter was ugly. A lot of these quarters in a row have been ugly. So some numbers to hit on here. They lost $393 million in the quarter. Net sales down 33%. And they're planning to close 150 more stores.
And so when you take a look at Bed Bath & Beyond stock, guys, you can see that that fell-- let's get a three month here so we can get back to January. They reported pretty early. You can see that that fell on this news here. And then it's had sort of that meme little vibe to it as well and it's popped back up. But the stock now down below 1.34. And I want to point to that because, really, the story with Bed Bath since earnings has been that funding deal that they have. There is a part of that deal that if the stock sits below 1.50, that billion dollars that they're getting in funding over the next year could stop.
So that's the number you're watching. It's below 1.50 right now. In theory, when they go to get funded next month, it could stop if the stock remains below 1.50. So that's the number to watch with Bed Bath & Beyond. Again, taking a look at a longer term chart here, you can see it has not been a good ride for Bed Bath. They are our class clown of the quarter.
- It makes a lot of sense. To me, it's just amazing that there are a group of investors out there who still see this as an opportunity and bet on it time and time again, despite all of these headlines and all the reasons that we are naming it class clown.
- Josh, I think those are the same people that are going to bet on the WWE. I mean, the same people that are going to bet on a scripted event. In this case, we already know the script, how it ends with Bed Bath & Beyond.
JOSH SCHAFER: Yeah. I guess maybe the class clown should have been some of the people that are sending this price up a little bit, right, as we keep--
- They're adding to it. It's a whole family affair.
JOSH SCHAFER: Bankruptcy. Potentially.
