Bed Bath & Beyond has another 50% to fall, and its 'dumpster fire' first quarter means its days could be numbered, analysts say
"It's not going to take years. We could be talking about months at this point. We are in the end days," Loop Capital analyst Anthony Chukumba said.
REUTERS/Emily Elconin
- Analysts are sounding the alarm on Bed Bath & Beyond after a dismal earnings report.
- Bed Bath & Beyond reported a $358 million net loss the past quarter, slammed by inflation and low demand.
- "We are in the end days," Loop Capital analyst Anthony Chukumba said.
Analysts this week are taking a grim view of Bed Bath & Beyond's prospects as the stock craters in the wake of an earnings disaster and the CEO's resignation. In the word's of one analyst, it's a "dumpster fire".
Shares have dropped 23% in the past two days, falling to $5.01 as of 11:25 a.m. ET from Tuesday's close of $6.53.
The recent tumble comes after a disappointing first quarter for the retailer, as well as the announcement that CEO Mark Tritton would be resigning from his position. Bed Bath & Beyond reported over $357 million in net losses for the first quarter, stating in an earnings release that the company struggled from high inflation, low consumer confidence, and low demand for home goods.
A note this week from Bank of America estimates the stock still has a long way to fall, adding that the steep losses make liquidity a "top concern" for the company. The analysts lowered their price target for the stock to $2.60, a drop of about 50% from current levels.
Loop Capital analyst Anthony Chukumba went further to say that the company might go bankrupt in the coming months, adding that its first quarter results were a "dumpster fire" that could see the brand added to a long list of shuttered retailers.
"It's not going to take years. We could be talking about months at this point. We are in the end days," Chukumba said in an interview with Yahoo Finance.
Chukumba added he had little faith in the company's strategy for the future, which will largely be influenced by Ryan Cohen, the billionaire investor and GameStop chairman who bought a 10% stake in Bed Bath & Beyond in March.
"What strategy? I mean, there is no strategy," Chukumba said.
Bed Bath & Beyond's stock price has been on a downward trajectory since early last year, when the company was coined a meme stock. Year-to-date, the stock has fallen about 65%.