I mean, you are- you do outline in your report some of the challenges and headwinds, and you were just talking about them, that retailers are facing. I mean, it's also striking to me that in this environment, the company is doing that badly. This is a company that's going to go bankrupt, and the stock should trade accordingly. Bed Bath & Beyond is going to go bankrupt.Īnd so the fact that the stock price is going up while a bankruptcy filing is imminent, I mean, that's a story. I mean, look, the fat lady is not just singing, she's on her encore right now. But I think at the end of the day, there's so many of the fundamentals from a business perspective too that we have to acknowledge and have to be acknowledged that go counter to what the stock price is actually doing, even if they omitted the word bankruptcy from their most recent earnings.ĪNTHONY CHUKUMBA: 100%. I mean, when they file, the equity will be worthless.īRAD SMITH: A lot of retail traders out there are kind of asking about why media covers Bed Bath & Beyond the way they do.
And so the fact that the stock is up since they reported earnings is nonsensical, in a word, quite frankly.
Now there's a report that they're working with Sycamore Partners on a prepackaged sale of assets, probably Bye Bye Baby. I mean, it's been very widely reported in the press that they are working with AlixPartners. I mean, Bed Bath & Beyond is going to go bankrupt. And I will say, what is going on with Bed Bath & Beyond just the past few days of what's gone on with their stock price, it is a living, breathing example of the need for financial literacy education in the United States. I've been thinking a lot about Bed Bath & Beyond lately. So we're starting to think that we may see a risk-on trade because it's looking to us like there's a higher probability that we have a soft landing in 2023.īRIAN SOZZI: Anthony, well, if the consumer is going to hang tough this year and maybe surprise a few folks, what does it mean for companies trying to turn themselves around like a Bed Bath & Beyond? Can they survive?ĪNTHONY CHUKUMBA: Well, Bed Bath & Beyond's a very, very unique situation. They're now down in the low kind of $3 range.
So the Fed's interest rate increases are clearly working.Īnd in addition to that, gasoline prices continue to decline. That was down 60 basis points from the prior month, 130 basis points from two months prior. Now, the housing market is tough.īut the main thing is that inflation continues to come down, right? So the latest reading was 6.5%. And I will tell you, the last few months we are getting more and more bullish on the consumer.įirst off, the employment market remains incredibly robust. We call it the "Eye on the Consumer." It's just a bunch of different macroeconomic variables that we keep track of to gauge where the consumer's head is at. What is the state of the consumer? And what does it mean for some of the retailers that you cover?ĪNTHONY CHUKUMBA: Sure. So you've done a lot of work on the consumer. Anthony, always great to get some time with you here.
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