Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bed Bath & Beyond (BBBY) Unveils Three Owned Brands, Rallies 62%

By Zacks Investment ResearchStock MarketsJun 02, 2021 11:18PM ET
www.investing.com/analysis/bed-bath--beyond-bbby-unveils-three-owned-brands-rallies-62-200584067
Bed Bath & Beyond (BBBY) Unveils Three Owned Brands, Rallies 62%
By Zacks Investment Research   |  Jun 02, 2021 11:18PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Shares of Bed Bath & Beyond Inc. BBBY skyrockets 62.1% on Jun 2 as it furthers its transformation plan, unveiling the launch of three more Owned Brands this quarter, just ahead of the Back-to-College shopping season. The launch forms part of the company’s key assortment expansion plan, with the objective of rebuilding its position in the $180-billion home market.

The product lines to be launched include Our Table, Wild Sage and Squared Away. The Our Table line will include modern cookware, bakeware, food prep, kitchen gadgets & utensils, kitchen linens, dining & barware products. The product line will comprise more than 1,100 products. Wild Sage is a youthful, eclectic collection of about 600 stylish housewares for the bedroom, bathroom, dining room and living space. Squared Away mainly includes storage, organization and cleaning solutions for the home. It offers nearly 300 storage items for the kitchen, closet, bathroom and organization throughout the home.

The latest product introductions will bring the company’s Owned Brands launches so far this year to six. Notably, it launched the Simply Essential, Haven and Nestwell Owned Brands last quarter. Simply Essential assortment line has been thoughtfully designed for meeting needs across every room of a house. It is the company's first full-line assortment at opening price points. Nestwell is an assortment line, including quality bed and bath goods. The Haven is a bath brand, which offers spa-inspired organic cotton products and more.

The launches indicate that the company is well ahead of its target of introducing at least eight Owned Brands by the end of February 2022. Moreover, the company earlier revealed plans to launch at least 10 Owned Brands in the next two years as part of its three-year transformation strategy.

Its transformation plan focuses on removing product redundancies and unproductive stock keeping units, store remodels and store closures. The company expects the Owned Brands to cater to the consumer needs across segments such as bed, bath, kitchen and dining, storage and organization, and home decor. It remains focused on launching several private-label brands, which are likely to contribute more than 60% to its revenues.

Moreover, management expects the sales penetration of Owned Brands to grow from 10% to 30% in the first three years. Further, the company expects to boost the gross margin by managing costs and sourcing. Another major step in its comprehensive growth strategy includes plans to launch thousands of products, exclusively available only at Bed Bath & Beyond.

The company is also on track with its three-year store optimization efforts. Management remains on track to close roughly 200 underperforming Bed Bath & Beyond stores by the end of fiscal 2021. As part of the program, it earlier expected nearly 15-20% of the sales lost from the stores to be transitioned to digital platforms. Also, it is progressing well with the store remodeling program, wherein proof-of-concept stores will showcase destination categories, bed, bath, kitchen, and storage products. The three-year plan will be executed on more than 450 stores, accounting for nearly 60% of its sales.

Further, the company intends to invest roughly $250 million to remodel nearly 450 stores over the next three years. Also, 130-150 stores are likely to be remodeled in fiscal 2021, with 26 stores in the fiscal first quarter.

Bed Bath & Beyond is focused on boosting consumers’ shopping experience by offering a wide range of home-related merchandise. Its moves to expand the Owned Brands assortment are likely to create substantial opportunities for long-term growth. This along with its store optimization efforts as well as digital and omni-channel expansion positions the company for growth in the future.

Zacks Investment Research
Zacks Investment Research
Image Source: Zacks Investment Research


Overall, shares of the Zacks Rank #3 (Hold) company have surged 54.2% in the past six months compared with the industry’s 8.5% growth.

Better-Ranked Retail Stocks to Consider

DICK’S Sporting Goods, Inc. DKS currently sports a Zacks Rank #1 (Strong Buy). It has a long-term earnings growth rate of 7.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hibbett Sports (NASDAQ:HIBB), Inc. HIBB, also a Zacks Rank #1 stock, has a long-term earnings growth rate of 8.5%.

Ulta Beauty (NASDAQ:ULTA) Inc. ULTA, with a Zacks Rank #1, has a long-term earnings growth rate of 16.5%.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ulta Beauty Inc. (ULTA): Free Stock Analysis Report

Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report

DICKS Sporting Goods, Inc. (DKS): Free Stock Analysis Report

Hibbett Sports, Inc. (HIBB): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research
Bed Bath & Beyond (BBBY) Unveils Three Owned Brands, Rallies 62%
 

Related Articles

Bed Bath & Beyond (BBBY) Unveils Three Owned Brands, Rallies 62%

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email