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

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