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What Analysts Expect for Bed Bath & Beyond’s 4Q17 Revenue

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Apr. 6 2018, Published 1:18 p.m. ET

4Q17 revenue expectations

Analysts are expecting Bed Bath & Beyond (BBBY) to post revenue of $3.7 billion, which represents a growth of 4.3% from $3.5 billion in 4Q16. Revenue growth is expected to be driven by the addition of new stores and sales from non-same-store sales growth (or SSSG) components.

Compared to 4Q16, Bed Bath & Beyond operated 12 more stores at the end of 3Q17, which includes four World Market stores, five of buybuy BABY stores, and three each of Christmas Tree Shops and andThat! stores. These new stores and the stores opened in 4Q17 are expected to drive the company’s revenue.

However, some of the revenue growth is expected to be offset by the lower unit count of Bed Bath & Beyond’s brand stores. The company’s management expects the net unit count of these stores to fall by five units in 2017.

BBBY acquired Chef Central, a kitchenware retailer, on January 27, 2017, and Decorist, which provides online personalized home design services, on March 6, 2017. Sales from these brands are also expected to drive the company’s revenue.

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Considering its performance in the first three quarters of 2017, management set its SSSG guidance for 2017 in the low single-digit percentage range. To drive SSSG, BBBY is focusing on providing a differentiated and complete product assortment, services, and solutions that could enhance its offerings and a shopping experience that is both convenient and engaging through personalized marketing.

Peer comparisons

During 4Q17, Williams-Sonoma (WSM) and Home Depot (HD) posted revenue growth of 6.2% and 7.5%, respectively, while the revenue for Lowe’s (LOW) fell 1.8%.

Outlook

Analysts are expecting Bed Bath & Beyond to post revenue of $12.3 billion in the next four quarters, which represents growth of 1.1% from $12.2 billion in the corresponding four quarters of the previous year.

Next, we’ll look at analysts’ EPS (earnings per share) expectations for 4Q17.

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