Bed Bath and Beyond (BBBY) is a company that is doing well in terms of same store sales (SSS). Our estimates indicate that BBBY comps (increase in SSS) will come in at +6.5% versus the consensus expectation of +4.1% when the company reports Wednesday. Essentially, it looks like BBBY will once again beat the Street.
However, there is one major problem for BBBY and that is e-commerce. Considering that BBBY and Amazon.com have 93% product overlap and the love online shoppers have for Amazon, online growth remains a concern. BBBY’s inability to penetrate the online sector will surely haunt the company as it reports in future quarters.