Author Topic: BBBY - Bed Bath & Beyond  (Read 24207 times)

frommi

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Re: BBBY - Bed Bath & Beyond
« Reply #70 on: January 09, 2019, 09:39:27 PM »
The numbers for the quarter were pretty underwhelming in my view, the only positive thing was the guidance for 2$ EPS in 2018, 2019 and EPS growth in 2020. But if i can remember they said that already in past earnings calls. The market sometimes is a strange beast.


Gregmal

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Re: BBBY - Bed Bath & Beyond
« Reply #71 on: January 09, 2019, 10:11:07 PM »
The numbers for the quarter were pretty underwhelming in my view, the only positive thing was the guidance for 2$ EPS in 2018, 2019 and EPS growth in 2020. But if i can remember they said that already in past earnings calls. The market sometimes is a strange beast.

I don't know. I think you nailed it in the other thread. Sometimes, the pendulum just swings too far. Nothing concrete or scientific about it. Just supply and demand compressed over short periods of time, and noticeable to the keen observer. And in this instance, amplified by December's unusual events.

Spekulatius

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Re: BBBY - Bed Bath & Beyond
« Reply #72 on: January 10, 2019, 03:52:18 AM »
The numbers for the quarter were pretty underwhelming in my view, the only positive thing was the guidance for 2$ EPS in 2018, 2019 and EPS growth in 2020. But if i can remember they said that already in past earnings calls. The market sometimes is a strange beast.

That was a good bet. I agree the pendulum has swung too far for a lot of stocks. Thatís true for good or bad business. Even ROST went to $76 at the low and is now back to $90. The consumer economy is very strong in the US due to full employment and, tax cuts etc, which is helping retail plays, secular challenged or not. I think next years comps will be tougher.
To be a realist, one has to believe in miracles.

frommi

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Re: BBBY - Bed Bath & Beyond
« Reply #73 on: January 10, 2019, 05:45:39 AM »
After reading the earnings call transcript i am under the impression that they really have a strategy to survive the next decade. BEYOND+ is a similar program to Prime, with 20% off prices and free shipping. Just from what i read it looks like they are driving people into this programm to have repeat customers. But this comes at the expense of short term profits, because people just sign into that programm when they do their first larger purchase. But after a year the online coupon is off, giving them much more profit from online purchases while the customer is still hooked into the program. I really like these type of programs as an investor because it widens the moat and gives repeat cashflow. 20% of their sales are already online, so at some point the online sales are the driving force.
Has someone an opinion on BEYOND+ or some first hand experience?

Jurgis

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Re: BBBY - Bed Bath & Beyond
« Reply #74 on: January 10, 2019, 07:27:36 AM »
We don't use BBBY, TJX, DSW, etc. online at all. Even though we shop TJX and DSW - quite more often than BBBY - in bricks and mortar.

"Before you can be rich, you must be poor." - Nef Anyo
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Spekulatius

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Re: BBBY - Bed Bath & Beyond
« Reply #75 on: January 10, 2019, 07:41:32 AM »
After reading the earnings call transcript i am under the impression that they really have a strategy to survive the next decade. BEYOND+ is a similar program to Prime, with 20% off prices and free shipping. Just from what i read it looks like they are driving people into this programm to have repeat customers. But this comes at the expense of short term profits, because people just sign into that programm when they do their first larger purchase. But after a year the online coupon is off, giving them much more profit from online purchases while the customer is still hooked into the program. I really like these type of programs as an investor because it widens the moat and gives repeat cashflow. 20% of their sales are already online, so at some point the online sales are the driving force.
Has someone an opinion on BEYOND+ or some first hand experience?

This is more or less just a continuation of their mail coupon program. They used to sent 20% off coupons to virtually any household every couple of weeks, but no more. Moving this online rather than carpedbombing mail coupons makes sense, since they can track customers better and customize the program.
To be a realist, one has to believe in miracles.

Jurgis

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Re: BBBY - Bed Bath & Beyond
« Reply #76 on: January 10, 2019, 07:48:48 AM »
After reading the earnings call transcript i am under the impression that they really have a strategy to survive the next decade. BEYOND+ is a similar program to Prime, with 20% off prices and free shipping. Just from what i read it looks like they are driving people into this programm to have repeat customers. But this comes at the expense of short term profits, because people just sign into that programm when they do their first larger purchase. But after a year the online coupon is off, giving them much more profit from online purchases while the customer is still hooked into the program. I really like these type of programs as an investor because it widens the moat and gives repeat cashflow. 20% of their sales are already online, so at some point the online sales are the driving force.
Has someone an opinion on BEYOND+ or some first hand experience?

This is more or less just a continuation of their mail coupon program. They used to sent 20% off coupons to virtually any household every couple of weeks, but no more. Moving this online rather than carpedbombing mail coupons makes sense, since they can track customers better and customize the program.

Not completely just a continuation:

Quote
You love coupons (hey, who doesn't?). But why wait for one? For just $29 a year, BEYOND+ members get 20% off their Entire Purchase and free shipping!

I don't see a value of this for us.

I agree with Spekulatius that this looks better for the store than postal mail 20% off carpetbombing. I don't know the second order dynamics though: do they have a lot of customers who won't go to the stores now that they don't receive 20% off postal coupons? who either don't know about online program or don't want to pay for it? I guess we'll see.
"Before you can be rich, you must be poor." - Nef Anyo
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"American History X", "Milk", "The Insider", "Dirty Money", "LBJ"