Morningstar Rating

Stock Research and Analysis

by Jaime M. Katz, CFA

Bulls Say

Less discretionary categories such as linens, towels, cookware, and small appliances offer some resiliency amid macroeconomic cyclicality. The bridal, baby, and gift registry businesses provide a stable source of customers.
While the Bed Bath & Beyond concept is near saturation domestically, buybuy BABY, Harmon, and Cost Plus have a long runway for growth.
The firm has sizable international growth potential. The first Bed Bath & Beyond store opened in Canada in 2007, followed by Mexico in 2008 through a joint venture (with only 40 and 4 locations at year-end, respectively). Read more 

Bears Say

Low customer switching costs, along with the proliferation of e-commerce and mass-merchant competitors, could pressure long-term margins.
New homeowners represent a large portion of home-related purchases, tying results to the unpredictable housing market.
Increased promotional activity has created a challenging environment for home furnishing retailers and manufacturers. Read more 

Management

We've assigned Bed Bath & Beyond a Standard stewardship rating. In general, we consider management to be excellent operators with a strong history of balancing rapid growth and profitability. Cofounders Warren Eisenberg and Leonard Feinstein are   Read more 

Profile

Bed Bath & Beyond is a premier home-furnishings retailer, operating nearly 1,500 stores in all 50 states, Puerto Rico, Canada, and Mexico. Stores carry an assortment   Read more 

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