It's unclear how much this represents Bed Bath's total revenue. The stores still open, sell essential infant, personal and healthcare products to customers who need items urgently. It's unclear when these stores will reopen. This measure was until April 3 and is extended to at least May 2. These represent about 175 of 1500 stores that are still operational. Bed Bath's Response To COVID-19īed Bath has responded to COVID-19 by closing all its stores except the Buy Buy BABY and Harmon Face Values ('Harmon') stores. This gives me confidence in the economic turnaround afterward. ![]() They have undertaken several actions to address the economic repercussions of the virus. Governments and central banks are taking this seriously. This means everyday life will pick up again and the economy has a decent chance to recover. I believe it's important to take away that this is a crisis limited in time. There is, however, a clear light at the end of it. It's a dark tunnel we're going through and we don't know how long it is. ![]() Some companies such as Johnson & Johnson ( JNJ ) have stated a vaccine will probably take 12 to 18 months to develop. These measures should be temporary, but the virus could come back as long as there isn't a cure or vaccine. The virus causes a lot of economic damage, mainly because of the slowdown measures. The coronavirus (COVID-19) situation can't be predicted in the short term. I want to express my gratitude to them for helping us through this difficult time. I have the utmost respect for all healthcare professionals who are dealing with this. Healthcare systems around the world are under immense pressure. It feels strange to talk about stock values during a global pandemic. Source COVID-19 Evolution Is Unpredictable In this new write-up, I will focus on both these short- and long-term challenges. This article was meant to analyze Bed Bath as a long-term investment. He was received very well by investors because of his experience as Chief Merchandising Officer at Target Corporation ( TGT). The new management came with a new CEO, Mark J. These investors and new management announced a new strategy that was focusing on getting revenue back on a growth track, improving profitability, etc. I talked about the activist investors who put the new management in place. I wrote an article about Bed Bath & Beyond on December 10, 2019. It's clear that COVID-19 impacts Bed Bath a lot in the short term and could have a long-term impact as well. ![]() Recent developments around COVID-19 have caused to close most of its stores. Most of its profits come from selling these goods through physical stores. Bed Bath looks to be valued below its long-term potential.īed Bath & Beyond is an omnichannel retailer selling a wide assortment of domestic merchandise and home furnishings. The company is taking the right measures to handle this crisis and seize opportunities as well. The company will go through a rough patch as long as it has to close most of its stores. It will take time to recover lost revenue and an omnichannel becomes even more important. I believe Bed Bath ( BBBY) will survive this pandemic and come out stronger.
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