KeyBank On Bed Bath & Beyond: 'We Remain Cautious On Fundamentals, Shares'

Key Bank's Bradley Thomas commented on Bed Bath and Beyond's BBBY competitive and structural issues that the company has currently been facing.

Competitive Concerns

The analyst noted growing product overlap with Amazon up to 76% from 68% last quarter, increasing the E-commerce competitiveness with Bed Bath and Beyond. In terms of pricing however, Bed Bath and Beyond has lowered the gap, bringing down a 12% price disadvantage to an 8% disadvantage from last quarter.

Long Term Ideation At Risk

Thomas was also concerned for a potential lack of innovation in the future. Although the analyst believed Bed Bath and Beyond "is one of the most well-run companies in [his] coverage, "Thomas was concerned for the long-term outlook. As competition intensifies "We believe all retailers today need new perspectives" and the long term limits for Beyond's management do not help stated the analyst.

At the time of writing, Bed Bath and Beyond traded down 0.02% at $44.44.