After Bed Bath & Beyond forecast a weaker-than-expected profit for
the current year as it has to hasten its spending to improve its
e-commerce business, its shares plunged 11 percent.
The shares of the US home goods chain, Bed Bath & Beyond Inc
(NASDAQ: BBBY), plunged 11 percent after it forecast a
weaker-than-expected profit for the current year as it has to hasten its
spending to improve its e-commerce business, in order to meet the
challenge of incentives for shoppers for buying home goods online being
rolled out by Amazon.com (NASDAQ: AMZN).
Amazon launched home furnishings website Casa.com in February, which is
being viewed by some analysts as a potential competitive threat to Bed
Bath. Already Bed Bath reported decline in gross margin in the recently
concluded fiscal first quarter as well as the fourth quarter of last
year, which indicates that Amazon is tearing through its home
furnishings business. Moreover, due to the financial crunch, more
customers are going in for cheaper products. Read More.......
Resource Link Sharewell Newswire
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