Yesterday after the close, S&P 500 home furnishings retailer Bed, Bath & Beyond (BBBY) reported an ugly quarter (BBBY FY 3Q Earnings Release).
Revenues were up 11% but same store sales were weak, up only .8%, and Net Income was down almost 9% if you exclude a tax benefit and share buybacks. A huge share buyback program led to positive EPS growth. But the actual business is generating less money.
A look at Bed & Bath’s same store sales shows a sharp falloff the last 3 quarters and especially the just completed one (BBBY Same Store Sales Chart).
This is just more evidence of weakening consumer spending and an overall weakening in the economy – as if we needed more.
Disclosure: Top Gun has no position in Bed, Bath & Beyond (BBBY) shares.