Union, N.J. – A dire forecast from Morgan Stanley is raising the stakes even further on Bed Bath & Beyond as it prepares to outline its progress on Aug. 31.
The investment management firm is estimating the company will show an EBITDA loss of $212 million this year and negative cash flow of $918 million, according to Seeking Alpha. Key factors Morgan Stanley is looking for in Bed Bath & Beyond’s strategic update include:
- The terms of its recently secured financing. Details have not yet been made public.
- The impact of that financing on cash flow.
- Bed Bath & Beyond’s current relationship with vendors. Last week, Bloomberg reported that some vendors had begun restricting or stopping shipments to Bed Bath & Beyond due to late payments.
- Plans to stabilize the business. Q1 comp sales fell 23% on a consolidated basis and were down 27% at the Bed Bath & Beyond chain. In late June, quarter-to-date comps were still trending in the negative 20’s.
- Plans for the buybuy Baby business, which generated double-digit growth last year and rang up more than $1.4 billion in sales
Bed Bath & Beyond interim CEO Sue Gove is also likely to discuss the retailer’s efforts to rebalance its merchandise assortment, which had become overstuffed with private label goods. In addition, she may comment on the company’s search for a permanent CEO.
The Bed Bath & Beyond strategic update will be broadcast live from the Investor Relations page of its website on Wednesday, Aug. 31 at 8:15 a.m. ET. The company said last week that it will release presentation materials around 7:30 a.m. ahead of the webcast.
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