Topic > Bed Bath & Beyond (bbby) Analysis

Bed Bath & Beyond (BBBY) is a store we are all familiar with today. Bed Bath & Beyond started with a bang in 1971 and has continued to expand ever since. Recently, BBBY has faced serious competition especially in the e-commerce platform. I have done extensive research on the company in order to provide an investment recommendation. I will start with research on the company, its history, risks and plans for the future. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayBed Bath & Beyond is a large-scale retailer of home improvement goods. The company has many subsidiaries including Christmas Tree Shops, Harmon, Harmon Face Values, buybuy Baby. Bed Bath & Beyond sells home items such as bedding, bath items... and home furnishings such as basic home items, tabletop items, kitchen items.... Bed Bath & Beyond sells the its products in stores and online/mobile. They have 1,530 stores located in the United States, the District of Columbia, Puerto Rico and Canada and also have a website (Reuters.com). The company's headquarters are located in Union, New Jersey. Steven H. Temares has been CEO of BBBY for the past two years and has been with the company for 13 years (Forbes.com). Currently, BBBY has 65,000 employees. Bed Bath & Beyond first opened on October 5, 1971. The company was founded by Warren Eisenberg and Leonard Feinstein in New York and New Jersey. The time was ripe for the industry and the stores continued to expand, eventually going public in 1992. It continued to expand, eventually incorporating an online store and purchasing some of its branches. Bed Bath & Beyond's primary industry is the retail industry, specifically in home furnishings and housewares stores. Some of Bed Bath & Beyond's competitors in the home furnishings departments are Appliance Recycling Centers of America, Inc., At Home Group Inc., The Container Store, and Williams-Sonoma Inc. BBBY's earnings for the first quarter of 2018 are were lower than in 2017. This caused the stock price to drop dramatically as people were nervous about their future earning potential. There were many causes for the decline in EPS. First, BBBY competes with Amazon and other large competitors. Next, BBBY is also in the process of expanding its stores and online store. BBBY's extensive discounts and promotions also contributed to this quarter's low EPS. Finally, BBBY offered a new membership called “Beyond+” in 2017. For $29 a year, members can enjoy free shipping on all purchases and a 20% discount on every purchase. This increased costs for BBBY and its margins fell even further. BBBY has been trying to keep up with the ever-changing retail industry, but its plans are falling short. BBBY faces some risks going forward. First, they face economic risks that they cannot control, such as tax rates, inflation, deflation, unemployment trends, interest rates, etc. Second, they face the risks of retail competition and technological advances (sec.gov). This includes unexpected pricing and practices, such as cheaper thresholds for free shipping. Third, BBBY runs the risk of failing to anticipate and adapt to changing customer preferences (sec.gov). If BBBY fails to anticipate and adapt to these changes, consumers will not be interested in the merchandise BBBY sells. Fourth, they face the risk of unusual weather conditions. Finally, BBBY is at serious risk if its IT systems.