Earnings Preview: Bed Bath & Beyond

Bed Bath & Beyond (BBBY) is expected to report Q1 earnings after the market close on Wednesday, June 24 with a conference call scheduled for 5:00 pm ET.

Guidance

Analysts are looking for a profit of 25c on revenue of $1.68B. The consensus range is 23c-28c for EPS, and revenue of $1.65B-$1.73B, according to First Call.

Analyst Views

This was the first fiscal quarter for the chain without competition from Linens N Things, although Bed Bath & Beyond is now facing challenges from Wal-Mart (WMT) and Target (TGT). Additionally, industry sales are down 12% in the last 12 months and are continuing to slump.

Mike Baker, an analyst at Deutsche Bank, believes the retailer's same-store sales will decline about 2%. He said the key trend to watch for is "the extent to which share gains from Linens N Things' demise can offset industry data that continues to trickle down." SunTrust Robinson's David Magee believes Bed Bath & Beyond will be the major beneficiary of Linens' closing, with both share gain and less margin pressure.

The retailer could see 1.5-2.5 percentage points of benefit to its SSS as a result of Linens' liquidation, Bernstein analyst Colin McGranahan said. Shares of Bed Bath & Beyond rose about 40% during the quarter.