3 Key Retail Picks as Bed Bath & Beyond Tumbles

Bed Bath & Beyond shares tumbled in trading Thursday after the retailer issued a weaker 2018 forecast; here are three key retail picks to go with instead.

Bed Bath & Beyond shares dropped more than 18 percent in trading which put them on pace with their worst day in history, dating back to their IPO in June 1992.

The stock is down more than 55 percent over the past year.

Bed Bath & Beyond Earns $1.48 A Share

According to Markets Insider, “The retailer earned an adjusted $1.48 a share, outpacing the $1.39 that analysts surveyed by Bloomberg were expecting. The results, however, were way below last year’s fourth-quarter earnings of $1.84. Revenue of $3.72 billion topped the $3.68 billion that was anticipated.Same-store sales for the fourth-quarter also beat, coming in at -0.6% versus a year ago, easily surpassing the 2.3% drop that was expected.”

Bed Bath & Beyond is down more than 20% on the year. The company envisions fiscal 2018 earnings per share to be in the low-to-mid $2 range. The company delivered adjusted earnings per share of $3.12 in fiscal 2017. In addition, the Zacks Consensus Estimate for fiscal 2018 is at $2.76.

For fiscal 2018, the company projects capital expenditures to lie between $375 million and $425 million.

Bed Bath & Beyond Struggles to Go Beyond

Bed Bath & Beyond has struggled to keep up with e-commerce and growing online businesses.

“Too many of Bed Bath & Beyond’s stores — especially older ones — are a mess. They are a hodge-podge of product, tightly crammed into a space that is largely devoid of inspiration. This makes them hard and sometimes unpleasant to shop,” Neil Saunders, managing director of GlobalData Retail, told CNBC in an email.

“At peak times, lines can be long, and it can be hard to find associates to assist on the shop-floor,” he added.