What's Bed Bath & Beyond Doing Wrong?
Shares of home goods retailer Bed Bath & Beyond remain lower today after the company announced earnings yesterday. Some highlights from the report include an increase in sales and earnings year over year, but the market chose to focus on the company's reduction of full year guidance for 2014. Motley Fool Energy Analyst Taylor Muckerman thinks that the company's lowering of its high end below its previously low end of guidance was the main reason shares have declined around 13% today.
While the easy excuse for this would be lower consumer spending and macroeconomic factors, Taylor believes consumer confidence may be the main culprit. After all, poor confidence is what hurt Bed Bath & Beyond competitors Family Dollar and Pier 1 Imports and caused them to lower their guidance as well.
So is today the day to buy Bed Bath & Beyond for cheap? Taylor says that while you could buy shares for less today, he'd rather be investing in TJX Companies . TJX has a much more diversified portfolio than Bed Bath & Beyond, as well as a dedicated following.
The article What's Bed Bath & Beyond Doing Wrong? originally appeared on Fool.com.
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