Bond Market News

American retailer Bed Bath & Beyond reported dismal earnings late last week with revenues falling 28% to $1.88bn vs. $1.95bn expected for its third quarter ended November 27. The company also disappointed on earnings with its net loss widening to $276mn from $75mn a year ago. After adjusting for one-off items, loss per share came in at 25 cents vs. expectations of it breaking even. Bed Bath said that the miss on sales was partly due to store closures, which are expected to reach 200 by year-end from 170 as at 2021-end. While same-store sales fell 10%, the number was up by mid-single-digit at its BuyBuy Baby segment. CEO Mark Tritton commented, “Our buybuy BABY banner continues to deliver double-digit growth and we are on track to achieve approximately $1.3 billion in sales in this first year of transformation – ahead of our investor day goals – all while improving profitability and market share.” The company lowered its outlook for the full fiscal (ending February) with adjusted loss expected between 0-15 cents on sales of $7.9bn vs. earlier guidance of earnings of $0.70-1.10 per share on sales of $8.1-8.3bn.

The earnings miss dragged its longer-dated bonds lower with its 4.915% 2034s and 5.165% 2044s falling 6.07% and 5.3% on Monday to 81.25 and 74.05 cents on the dollar currently, yielding 7.21% and 7.58% respectively.

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