We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bed Bath & Beyond's (BBBY) Nestwell Launch to Aid Transformation
Read MoreHide Full Article
The pandemic has introduced several changes in our daily lives, including stay-at-home practices. In doing so, people are ending up lounging on the bed for most part of the day. Also, the stay-at-home trend has aroused interest among people for enhancing or renovating their home space and spending more on home items. Bed Bath & Beyond Inc. is cashing-in on this new-found appreciation for the home space with the launch of its latest private label brand — Nestwell.
The new product line offers a wide range of affordable and comfortable bedding and bath products, including sheets, pillows, blankets, duvets, mattress toppers, bath towels and bath accessories, which will be available only at Bed Bath & Beyond stores and Bedbathandbeyond.com from Mar 22. Customers can avail delivery options such as Buy-Online-Pickup-In-Store (BOPIS), contactless curbside pickup and same-day delivery at the time of purchase.
Further, it comes with an online quiz, namely Nestwell to Rest Well, which helps identify customers’ nesting archetypes, curate designing beds by interior designers at Decorist and products that suit their individual sleeping pattern.
This move comes after significant growth across store-owned or private-label brands compared with the national brands. Also, industry experts believe that Bed Bath & Beyond’s latest development is one of the first blows to shatter Target’s (TGT - Free Report) dominance in the home business. Going ahead, the company remains focused on meeting consumers’ growing demand across segments, such as bed, bath, kitchen and dining, storage and organization as well as home decor. Apart from these, its comprehensive growth strategy includes plans to launch thousands of new products, exclusively available only at Bed Bath & Beyond.
Keeping in these lines, the company plans to launch seven more store-owned or private-label brands in fiscal 2021. Moreover, the company is likely to introduce at least 10 Owned Brands in the next two years. The sales penetration of Owned Brands is expected to grow from 10% to nearly 30% within the first three years. These actions are expected to boost the company’s footing in the $180-billion Home market.
These endeavors are part of its transformation plans in a bid to achieve improved profits over the next two-three years. Notably, management is on track to invest $1-$1.5 billion over the next three years, out of which $250 million will be utilized to remodel roughly 60% of stores and the remaining will likely be spent on improving the supply chain and digital capabilities. Driven by such upsides, the company envisions low- to mid-single-digit same-store sales growth and an operating profit of $1 billion by 2023, according to sources.
All said, we hope that such well-chalked plans are likely to boost top-line growth in the near term. In the past three months, this Zacks Rank #3 (Hold) stock surged 70.7%, outperforming the industry’s growth of 13.6%.
Hibbett Sports (HIBB - Free Report) currently has a long-term expected earnings growth rate of 17.2% and a Zacks Rank #1.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Bed Bath & Beyond's (BBBY) Nestwell Launch to Aid Transformation
The pandemic has introduced several changes in our daily lives, including stay-at-home practices. In doing so, people are ending up lounging on the bed for most part of the day. Also, the stay-at-home trend has aroused interest among people for enhancing or renovating their home space and spending more on home items. Bed Bath & Beyond Inc. is cashing-in on this new-found appreciation for the home space with the launch of its latest private label brand — Nestwell.
The new product line offers a wide range of affordable and comfortable bedding and bath products, including sheets, pillows, blankets, duvets, mattress toppers, bath towels and bath accessories, which will be available only at Bed Bath & Beyond stores and Bedbathandbeyond.com from Mar 22. Customers can avail delivery options such as Buy-Online-Pickup-In-Store (BOPIS), contactless curbside pickup and same-day delivery at the time of purchase.
Further, it comes with an online quiz, namely Nestwell to Rest Well, which helps identify customers’ nesting archetypes, curate designing beds by interior designers at Decorist and products that suit their individual sleeping pattern.
This move comes after significant growth across store-owned or private-label brands compared with the national brands. Also, industry experts believe that Bed Bath & Beyond’s latest development is one of the first blows to shatter Target’s (TGT - Free Report) dominance in the home business. Going ahead, the company remains focused on meeting consumers’ growing demand across segments, such as bed, bath, kitchen and dining, storage and organization as well as home decor. Apart from these, its comprehensive growth strategy includes plans to launch thousands of new products, exclusively available only at Bed Bath & Beyond.
Keeping in these lines, the company plans to launch seven more store-owned or private-label brands in fiscal 2021. Moreover, the company is likely to introduce at least 10 Owned Brands in the next two years. The sales penetration of Owned Brands is expected to grow from 10% to nearly 30% within the first three years. These actions are expected to boost the company’s footing in the $180-billion Home market.
These endeavors are part of its transformation plans in a bid to achieve improved profits over the next two-three years. Notably, management is on track to invest $1-$1.5 billion over the next three years, out of which $250 million will be utilized to remodel roughly 60% of stores and the remaining will likely be spent on improving the supply chain and digital capabilities. Driven by such upsides, the company envisions low- to mid-single-digit same-store sales growth and an operating profit of $1 billion by 2023, according to sources.
All said, we hope that such well-chalked plans are likely to boost top-line growth in the near term. In the past three months, this Zacks Rank #3 (Hold) stock surged 70.7%, outperforming the industry’s growth of 13.6%.
Stocks to Consider in the Retail Space
Abercrombie & Fitch (ANF - Free Report) has a long-term earnings growth rate of 18% and currently, a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hibbett Sports (HIBB - Free Report) currently has a long-term expected earnings growth rate of 17.2% and a Zacks Rank #1.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>