STREAMING NOW: Watch Now
CLOSINGS: View Closings

Bed Bath & Beyond is in serious trouble

Bed Bath & Beyond ... hope?The struggling retailer issued a ...

Posted: Apr 18, 2018 1:38 PM
Updated: Apr 18, 2018 1:38 PM

Bed Bath & Beyond ... hope?

The struggling retailer issued a lousy outlook last week, sending the stock to a nearly 10-year low.

Credit ratings agency Standard & Poor's cut its rating on Bed Bath & Beyond late Tuesday to a BBB- level, the lowest that S&P still considers investment grade. S&P warned that it could soon downgrade Bed Bath & Beyond's bonds to junk, if "the company cannot stabilize operating performance in the face of continued intense competition from online retailers."

That could make it more difficult for Bed Bath & Beyond to borrow more money and will likely increase the amount of interest it has to pay on its existing long-term debt load, which stood at about $1.5 billion as of the end of its most recent quarter.

Related: Retail defaults soar to a record high in 2018

The company was not immediately available for comment about the recent downgrades.

But Bed Bath & Beyond remained upbeat about its future in its recent earnings report. It even boosted its dividend payment to shareholders, saying that it was "a reflection of the long-term health of the business."

Still, higher expenses are the last thing that Bed Bath & Beyond needs.

Moody's, another major credit rating firm, cut its rating on Bed Bath & Beyond back in January as well. Moody's now has Bed Bath & Beyond's bonds rated Baa2 -- two notches above junk level.

Moody's vice president Mickey Chadha also cited "increased competitive and pricing pressures from e-commerce and other large discount retailers," adding that competition "has compelled the company to maintain a highly promotional marketing strategy."

Bed Bath & Beyond, like many other traditional retailers, is facing intense competition from Amazon, Walmart and Home Depot as well as other specialty e-commerce companies like Wayfair.

In fact, Wayfair just announced a new gimmicky promotion Wednesday. It's proclaiming that April 25 will be Way Day and is planning to offer what it describes as "Black Friday-low prices for 24 hours on thousands of popular home furnishings."

Say what you want about the need for a Black Friday event on a Wednesday seven months before the real thing. But as long as Wayfair, Amazon and others are slashing prices on furniture and other home goods, that's bad news for Bed Bath & Beyond.

Click to Submit Photo

 

 

Huntsville
Overcast
57° wxIcon
Hi: 63° Lo: 57°
Feels Like: 57°
Florence
Overcast
58° wxIcon
Hi: 59° Lo: 56°
Feels Like: 58°
Fayetteville
Overcast
54° wxIcon
Hi: 61° Lo: 55°
Feels Like: 54°
Decatur
Overcast
57° wxIcon
Hi: 63° Lo: 55°
Feels Like: 57°
Scottsboro
Scattered Clouds
66° wxIcon
Hi: 67° Lo: 60°
Feels Like: 66°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 155915

Reported Deaths: 2674
CountyConfirmedDeaths
Jefferson22988375
Mobile16788315
Tuscaloosa10235140
Montgomery9978197
Madison922894
Shelby727463
Baldwin661569
Lee651765
Marshall437249
Calhoun422461
Etowah421450
Morgan407135
Houston371734
DeKalb336029
Elmore317353
St. Clair289142
Limestone279730
Walker275593
Talladega263635
Cullman239925
Lauderdale218042
Jackson212515
Franklin203231
Autauga203030
Colbert198731
Russell19283
Blount191125
Dallas186327
Chilton185832
Coffee173211
Escambia172230
Covington171429
Dale166551
Chambers134343
Clarke133617
Pike132713
Tallapoosa131387
Marion107129
Barbour10129
Butler100240
Marengo100222
Winston91913
Geneva8617
Lawrence83732
Pickens83618
Bibb82514
Randolph82016
Hale75830
Clay73612
Washington73412
Cherokee73114
Lowndes70428
Monroe64510
Henry6436
Bullock63917
Crenshaw60330
Perry5856
Fayette56913
Wilcox56412
Conecuh56013
Cleburne5518
Macon53020
Lamar4745
Sumter47221
Choctaw39012
Greene34216
Coosa2033
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 241513

Reported Deaths: 3076
CountyConfirmedDeaths
Shelby35564562
Davidson30982333
Knox1239889
Rutherford11502113
Hamilton11497105
Williamson689756
Sumner5900109
Wilson457756
Putnam432955
Montgomery408052
Out of TN390636
Madison371180
Sullivan354046
Bradley351923
Washington332649
Sevier329921
Blount327334
Maury316437
Unassigned28378
Robertson257741
Hamblen242248
Tipton230922
Dyer216329
Gibson212342
Hardeman185433
Coffee183223
Trousdale17587
Obion173021
Greene165451
Bedford165020
Fayette165022
Anderson164614
Dickson163619
McMinn158934
Loudon158811
Cumberland158425
Wayne15847
Lawrence155618
Jefferson152920
Weakley151125
Carter149532
Monroe141928
Warren141510
Lauderdale140417
Henderson139825
Hardin137519
Macon130725
Franklin126317
Roane12577
Haywood125327
Overton118416
Hawkins117024
White115014
Johnson11277
Carroll112525
McNairy111127
Marshall11089
Rhea108317
Cheatham103111
Cocke101412
Bledsoe10104
Lake9803
Smith97613
Campbell9759
Giles93735
Fentress88910
Lincoln8523
Crockett82920
Henry77110
Hickman76715
Marion7419
Chester72114
DeKalb71117
Decatur64811
Grainger5664
Grundy54511
Union5233
Claiborne5146
Polk49213
Jackson4465
Humphreys4344
Morgan4317
Benton4119
Cannon4042
Houston40417
Unicoi3953
Clay39413
Lewis3752
Scott3625
Sequatchie3384
Stewart3179
Meigs3066
Perry2772
Pickett2627
Moore2592
Van Buren2011
Hancock1153

Community Events