Bed Bath & Beyond stock plummets 11%

Bed Bath & Beyond (BBBY.US) stock fell 11% amid a broader market selloff. Company unveiled a transformation program that aims to unlock potential and boost profitability. Retailer is planning to repurchase $675 million worth of stock over the next three years while outlining an aggressive turnaround plan that includes store closures and supply chain investments. Company will invest approx. $250 million on store remodeling and an similiar amount on 'reinventing' its supply chain.

Bed Bath & Beyond announced new financial targets for the upcoming years. Company hopes to achieve  free cash flows between $500 million and $1 billion over the next three years, and low to mid-single digit growth in comparable sales for its 2023 financial year. Sales for 2023 are expected to rise to around $1.5 billion, the company said.  Bed Bath & Beyond reported same-store sales growth of 6% during the last quarter.

Bed Bath & Beyond (BBBY.US) launched today’s session with a bearish price gap and is currently testing major support at $20.75. If sellers manage to break below it, a downward impulse towards $18.00 could be launched. On the other hand, if buyers regain control, resistance at $24.11 may be at risk. Source: xStation5

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.