I recall when the Keurig was first invented and I’d mosey on down to my local BBBY for a fresh supply of K-cups. Those were simpler times, with younger Fly running about the stripped mall in search of provisions. Now everything is done online. I rarely, if ever, visit BBBY — due to the fact that I’ve grown increasingly belligerent to consumerism. There was a point along my long road that included frequent trips to shopping malls and other unsavory destinations, all for the purposes of spending the money I had accumulated.
All that aside, I get the fact that BBBY is under siege from Amazon — but the valuation is cheap now.
Let’s have a look.
The share price is -50% over the past 2 years.
Revenues are no longer growing.
Earnings have collapsed, indicative of a company desperately trying to keep the top line growing through discounts and promotions.
They’re sporting a price to sales ratio of 0.36, a 70% discount to its historical average, the cheapest at any point since 2005 — including the financial crisis.
In spite of collapsing earnings, their PE of 7 is rock bottom.
With a debt/eq ratio of just 0.55, one could hardly make an argument for financial distress. So why aren’t you out there sopping up seemingly cheap shares of BBBY now, in anticipation of a blockbuster Xmas season of people buying up iRobots, doormats, and faux silverware at rockbottom bargain prices?
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Online retail sales don’t explain the collapse in retail spending. So where’s that vacuum coming from? Ready for it? We are collapsing. Don’t believe me? Look at money velocity. There isn’t any.
I’m a single guy, debt free and I can’t afford to go see my fucking doctor. How do you think the average family of 4.5 is making out?
Seen revolving consumer credit reports lately? Looks a lot like these fuckers are tapped out.
Spot on.
The money is being accumulated into hands that don’t spend it.
Labor unionism screwed itself (to some degree) and now we are all paying a price.
But POTUS and the “really rich guys” he picked to run the company will get that trickle down flowing for you real soon.
It’ll take a little longer though, they just finished drinking their champagne…
(Wow. This is turning into a workers of the world unite kind of day for me).
Gandered through a store a few weeks ago. Thought all the shit I was looking at was “As Seen on TV” crap.
LOL!
I bought a $4 bottle of that shit to clean your coffee pot and left. lol !
Aside from the store being a walking Shark Tank advertisement, everything is at least 20% overpriced. In the old days, everybody saved up their coupons and then eventually went shopping. A few years ago, they changed the policy so you only got the full 20% if the coupon wasn’t expired…well nobody is going there to buy one item, so they stopped going entirely.
There’s no reason TO go to that store, so people aren’t. No doubt many of the purchases have shifted to online, while much of it simply went away – that’s easily a top 5 store where you go in to buy something and end up with a bunch of crap when you leave…for 20% off it was worth it, full price no way.
Well, um, actually a pretty nice little Saturday is planned, we’re going to go to Home Depot. Yeah, buy some wallpaper, maybe get some flooring, stuff like that. Maybe Bed, Bath, & Beyond, I don’t know, I don’t know if we’ll have enough time.
The issue is nobody has enough time to go to these shitholes.
because Mr. Market is forward looking. Bed Bath is a zero inside 5 years.
They used to measure the health and future of retail by footfall. But with online shopping? No more feet. Brick and mortar retail that hasn’t already got significant online presence is in trouble.
I just bought about $180 of bedding and bath supplies at BBBY. Grumbled the whole time about the prices on what should seemed too expensive in my opinion but I needed it now and found everything I needed.
Stopped at Costco and found 50% of the stuff for less money and better quality. Found the rest at Target for cheaper, similar quality, better selection. Returned the whole batch batch to BBBY same day. Thats why I don’t own their stock.
I have a blood bath and beyond 2 blocks from me. won’t go there cause I don’t haven’t had an ‘immediate need’ for what they sell. the stock meh I just have better things to spend time on.
went into this store for first time ever a few week ago. i have never seen so many lines in a store. they have so much crap piled all the way up to the ceiling. frickin’ jenga champions work here or something..