Dive Brief:
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Home goods retailer Bed Bath & Beyond re-purchased $1 billion of its shares to offset a 5.7% increase in expenses and a decline in gross margins from 39.4% last year to 38.5% this year. The retailer has invested heavily in technology of late to boost its e-commerce.
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Credit Suisse retail analyst Gary Balter said that Wall Street’s consensus view that the retailer, like many brick-and-mortar stores, will ultimately fail belies the strength of Bed Bath & Beyond’s management team.
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And Raymond James analyst Budd Bugatch said that the retailer’s “laser focus on customer satisfaction” bodes well for its future.
Dive Insight:
Coupons from Bed Bath & Beyond famously never expire, and that may be an apt metaphor for the retailer’s fortunes. The retailer is struggling to enter the all-channel retail environment. Yet it’s the company's investment in technology that has in part whacked its bottom line. Investors are clearly taking the long view, and that will buy the retailer more time to meet its goals.