Bed Bath Promotions & Beyond fall after today, how a retailer warned of runaway inflation and supply chain problems.
What happened to stocks?
Wall Street retail analysts don't count, that these glitches only apply to Bed Bath & Beyond, therefore shareholders should beware.
“In the short term, it will be more difficult for retailers due to inflation and supply chain problems”, – said Seth Basham.
“You will see rising prices for consumers, and this will affect demand, and secondly, when we enter the peak of the holiday shopping season , then due to problems with the production of products there will be a shortage of supply. This is an increasingly negative picture for the broader home and retail sector ”.
Shares of a major retailer fell by 25% after that, as the company stated, that in August there was a sharp drop in traffic.
Future prospects for growth
Bed Bath & Beyond reported quarterly results with adjusted earnings of 4 cents on proceeds in $1,99 billion. Wall Street expected a profit of 52 cents on proceeds in $2,06 billion.
- Home goods company cut its revenue and profit forecast for the year, and her forecasts for the third quarter look bleak.
Global customer demand is growing Worldwide customer demand is growing
Brian Nagel, managing director of Oppenheimer, Noted, что Bed Bath & Beyond also reports for August. Most retailers reported only quarterly results for June or July.
“Is Bed Bath & Beyond a signal of deteriorating conditions either from the demand side, either from the supply chain side?” – asked Nagel. "I think, что Bed Bath & Beyond highlights increased pressure ”.
Kohl Stock's fell by more than 13% today, as investors are concerned about, that his fate is similar to that of his competitor.
Increasing demand
Macy's and Gap fell on 8% And 6% respectively. Remarkably, что Bed Bath & Beyond said in its income statement, that the delta Covid strain is preventing shoppers from entering stores. Nagel said, what he didn't hear, for any other retailers to mention coronavirus as the main reason.
“Bed Bath & Beyond, like other retailers, home retailers, benefited from the Covid crisis, as people spent more time in their homes ”, – said Nagel.
Consumers are now spending money on clothing, restaurants, globetrotting, sporting events and other forms of entertainment, he added.
