I recently had the pleasure of reading a stout and well-articulated article by Michael Boyd titled, "Bed Bath & Beyond: Battered And Bruised, But Still A Buy". Within the article, Mr. Boyd outlines a plethora of concerns surrounding the Bed Bath & Beyond (NASDAQ:BBBY) business and why the stock is still a Buy despite these concerns. With BBBY's shares trading near 52-week lows, Mr. Boyd might be right and investors might see as much as 20% upside in shares of BBBY when the company reports 1st quarter results in July. Remember, the home goods retailer reports outside of the typical S&P 500 reporting cycle. With that in mind, the company has not accounted for what most of its peers have when they reported a poor sales quarter for Q1 2016.
Many of Bed Bath & Beyond's peers have reported a dismal Q1 sales and traffic trend, while managing to beat bottom line expectations. With all of the share buyback programs proliferating in the retail space, the bottom line results have been managed/engineered quite well and despite weakening sales. Mr. Boyd depicts Bed Bath & Beyond's share repurchase program below:
