https://finance.yahoo.com/quote/BBBY/key-statistics?p=BBBY
Bull case:
- the company has a big footprint and will reap benefits as shoppers get bored with shopping on Amazon and having to post returns,
- $BBBY has invested a lot in securing some low-cost private label products, which will improve margins compared to their previous branded (and white label) offerings,
- the CEO has been ejected, the recent 'red ink' is the new one kitchen-sinking the bad news so that he can emerge victorious in a couple of years when his stock options come nearer to vesting.
Bear case:
- the company still loses money,
- the company has had many quarters of negative growth,
- it doesn't have a strong online presence,
- its product lineup is at least partially discretionary, compared to that of, say, Walmart's.
I am not convinced about the bull case. Not all 'lockdown losers' are ever going to bounce back. There are plenty of formerly huge retail bricks and mortar names that have bled turnover relentlessly.
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