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Snacks / Monday, September 26, 2022

Bed Bath &… Beyond repair? Expectations are low for Bed Bath & Beyond when it reports Thursday. Last month, the coupon legend announced plans to close 150 stores and lay off 20% of employees as it struggles to address slumping sales and sliding market share. BB&B has missed earnings expectations for four straight quarters, and its losses 7X’d last quarter as it struggled to stock items customers actually wanted. BB&B raised $500M in financing last month, hoping to head into the holidays with more cash and less baggage.

Air Jordan problems… Nike may be the most popular sneaker company, but it has big shoes to fill when it reports Thursday. Nike's direct-to-consumer sales grew 7% last quarter, but revenue in North America (its biggest market) fell 5% as inflation curbs sneaker splurges. In China, sales fell 20% as Covid lockdowns trip up demand. Now Nike’s focusing on ecomm (which make up a quarter of its sales) to offload kicks. It’s a steep climb: Nike’s spending 5X what it did prepandemic to ship products, and this year the stock’s down 41%.

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