Disappointing Results, Disappointing Expectations
I continue to be surprised by the lack of control that Bed Bath & Beyond's (BBBY) management has on the business. I have read the results and the earnings call transcript for Q4 and the key message is that nothing much is changing if we exclude another iteration of the management's long-term optimism that has never translated into actual improvements so far.
Once we exclude the 5.2% increase in sales driven by new store openings, there was not one metric moving in the right direction. Comps continued to decline, although not sharply (-0.60%), despite the clear and strong signs of improvements in the retail space in the United States, where retailers have been experiencing a solid rebound in the past few quarters and reported record sales during the holiday season.
