Bed, Bath & Beyond Buybacks

Tyler Durden's picture


Moments ago Bed, Bath and Beyond was the latest company to disappoint Wall Street (not for long: Barclays' aggressive "pernicious fraud" BTFD HFT algos will promptly fix this) when it reported Q1 revenues of $2.66 billion, below the $2.69 billion expected, and EPS of $0.93, also below the $0.95 expected. Worse, it guided Q2 below consensus, seeing a range of $1.08-$1.16.

None of this mattered to us. What mattered was the amount of cash BBBY spent on CapEx and Buybacks: after all we keep hearing so much about this CapEx renaissance that will push Q2 GDP to a 4%+ print from its miserable -2.9% in Q1. Alas, the next definition of US GDP will need to include a line item for "stock buybacks" too because one look at the long-term chart below showing BBBY capital spending and share repurchases since 2007 pretty much says it all.

One can almost smell the CapEx renaissance.... Any minute now.

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Wed, 06/25/2014 - 17:00 | 4895186 blindman
Wed, 06/25/2014 - 17:02 | 4895193 blindman
blindman's picture


Wed, 06/25/2014 - 17:21 | 4895274 Muppet
Muppet's picture

A totally x-cellent jam!

Wed, 06/25/2014 - 18:37 | 4895549 blindman
blindman's picture

bondzilla if you can find it.
I,__________, do herby declare this day, _______,
international global peace day. anyone participating
in any conflict either personal or professional can
take the day off and work on that neglected skill or
project that has been patiently waiting, the world
of war will not miss you.
signed, _________.
so it goes ........

Wed, 06/25/2014 - 17:02 | 4895196 apberusdisvet
apberusdisvet's picture

Cannot find one item in that store made in the USA;pitiful, really.

Wed, 06/25/2014 - 17:06 | 4895209 Pladizow
Pladizow's picture


Wed, 06/25/2014 - 17:10 | 4895229 Headbanger
Headbanger's picture

Oh CAPEX is so 1980's..

Wed, 06/25/2014 - 17:22 | 4895281 ebworthen
ebworthen's picture

Last time I was there I waited in a line of eight people at one open register.

Four employees walking around nearby with their little headsets doing nothing.

Wed, 06/25/2014 - 18:06 | 4895431 kchrisc
kchrisc's picture

Yup, one of those stores that I slowly quit going into because I would always have to stand in line behind three people that could make a RE transaction for a skyscraper look easy; and always with an untrained cashier to boot.

One time the store manager was walking by as I waited, so I handed her my planned purchases, and left--"Yippee ki-yay!"

Wed, 06/25/2014 - 18:17 | 4895470 aVileRat
aVileRat's picture

Funny, same story up here. 5 min. on Amazon, on the smart phone beat a cashier who was unable to process a price match.

BBBY should join TGT & JCP on the trash heap, but sadly, it will rubber band up 17%+ by November via buybacks and failing upwards from layoffs.




Wed, 06/25/2014 - 23:55 | 4896649 Kirk2NCC1701
Kirk2NCC1701's picture

Bad training.  But at those min. wages, you expect real clerical skills and great attitude?

BTW, to avoid paying Benefits, they have people working <30 hrs/week.  Given their schedule, it's hard to have a 2nd Min. Wage job.  ALL their is marked up 35-65%.  Even with the occasional 20% off on that one item, they are still making huge margins.

And it's owners (Eisenberg & Feinstein) are still Billionaires.  Boohoo, kitty.

Thu, 06/26/2014 - 01:33 | 4896779 ebworthen
ebworthen's picture

Yes, they were all 25 or under.

And my Grandma worked full time at J.C. Penney and retired; back when America was a nation.

Wed, 06/25/2014 - 18:26 | 4895503 Gaius Frakkin' ...
Gaius Frakkin&#039; Baltar's picture

Never been in one... ever... seriously.

Wed, 06/25/2014 - 17:03 | 4895201 ebworthen
ebworthen's picture

Who needs capital expenditure when the FED supplies TRILLION$ for the corporatocracy and the equities casino?

Wed, 06/25/2014 - 17:18 | 4895259 Mr. Saxby
Mr. Saxby's picture

And the Saudis keep taking only dollars....

Wed, 06/25/2014 - 17:07 | 4895214 Pooper Popper
Pooper Popper's picture


Wed, 06/25/2014 - 17:30 | 4895323 kill switch
kill switch's picture

Wev'e benn saying that for five years....Slowly down the vortex. When you watch the TVEEEEEEEE everything seem so normal. THIS SUCKS!!!!

Wed, 06/25/2014 - 17:38 | 4895343 NOTaREALmerican
NOTaREALmerican's picture

What if we're circling the black hole,  we might never get there.  Maybe all the doomers died and this is actually hell.   A never ending fall into the reset-black-hole but it never arrives and meanwhile the "Keynesian" are partying like there's no tomorrow in the room next door.

Wed, 06/25/2014 - 18:11 | 4895448 kill switch
kill switch's picture

NOTa REALmerican,,,


You may be on to somthing.....

Wed, 06/25/2014 - 18:15 | 4895462 kchrisc
kchrisc's picture

I was talking with my dad last night, and he said that he can only read ZH once a day, as he can only take the "confusion" of it all once a day. What he meant was that the cognitive dissonance caused by watching the complicit media and then getting a full dose of reality afterward is disorientating.

He said that it's like he straddling a line where one side of his body is in one "reality" and the other is in another--"Like the Twilight Zone or something." I counseled that he should continue to watch the complicit media, but that he needed to train his mind to not believe any of it and look for the agenda—like watching the horizon while on a boat to lessen seasickness.

Wed, 06/25/2014 - 17:45 | 4895215 Squid Viscous
Squid Viscous's picture

 their stores suck with 60 year old semi- retarded sales "assistants" that keep pestering you because you are one of 6 potential shoppers in a 15,000 sq ft store... unless you are in the gay/metrosexual "let's refurbish our studio apt. it's so exciting" - 6th ave "Fagship" NYC store - that place is nuts!

Wed, 06/25/2014 - 17:57 | 4895398 Ness.
Ness.'s picture

They only need to employ 2 skill sets at the store level.  One group to stock the shelves and One group who can run a register.  If you include conversion to self check-out, they are already making plans to eliminating one 'cost'. Hey, both are jobs that used to be done by pimple faced teenagers that are now they're done by single mothers with 3 kids, but that's another story.  Available stock, sales numbers and repurchase orders are all controlled thru their network and updated at point of sale.  As long as they can (are allowed to) peddle cheaply made shit from Asia, I see no reason for capex either.  The next cost saving method will be to close stores to reduce retail space, borrow on the cheap, buy back stock and make the investor class and their white shirts rich.  You can see America bleeding out right in front of your eyes.  Sad.  Meanwhile the world is more concerned about the soccer dude who twice in the past bit soccer players just took a bite out of another soccer player.  Yea I said soccer - I'm old.  


Wed, 06/25/2014 - 18:38 | 4895554 tarsubil
tarsubil's picture

Does anyone know how much longer they can keep this going?

Wed, 06/25/2014 - 17:11 | 4895232 NOTaREALmerican
NOTaREALmerican's picture

I'm sure if the Elysium or Elysium Support Class shops in this place, so - really - does it matter?

Wed, 06/25/2014 - 17:26 | 4895297 Harbanger
Harbanger's picture

There's no such thing as an Elysium class, Elysium is a pagan cult myth of an afterlife.  I saw the movie Elysium, it can be taken as typical Hollywood crap and it isn’t even trying to hide its left-wing bias.

Wed, 06/25/2014 - 17:28 | 4895311 NOTaREALmerican
NOTaREALmerican's picture

You can just translate it to the "top 1% and the corporate management class", no?

Wed, 06/25/2014 - 17:29 | 4895319 Harbanger
Harbanger's picture

You can translate crap into mierda.

Wed, 06/25/2014 - 17:40 | 4895350 NOTaREALmerican
NOTaREALmerican's picture

Somebody has to win.    In a survival of the fittest society you're either a predator or the prey.     There's no rules, and no rightous sword of libertarian justice to slay the hedonists who aren't living frugally.  

Wed, 06/25/2014 - 17:50 | 4895371 Harbanger
Harbanger's picture

When progressives run the World as they are now, nobody wins, everyone losses until justice is served upon those "smart and savvy" people.  My justice is not libertarian, just so we understand each other.

Wed, 06/25/2014 - 18:26 | 4895479 Flakmeister
Flakmeister's picture

Yep, its real easy when you just *know* that God is on *your* side...

Why don't  you just go away and we will pretend that you were raptured..

Wed, 06/25/2014 - 18:32 | 4895516 Harbanger
Harbanger's picture

Isn't the status quo pretending to have it under control right now?  I'm not only not going away, I'm multiplying exponentially. Don't fret my friend, you never had any power or influence anyhow, you were useful to the "smart and savvy" while they lasted.

Wed, 06/25/2014 - 17:17 | 4895255 Sudden Debt
Sudden Debt's picture

What else can they do with the money?
Give it to their EM PLO YEEEEESS?!?!?
Yeah.... Not gonna happen...

Wed, 06/25/2014 - 17:20 | 4895273 rosiescenario
rosiescenario's picture

....and after you look at the buy backs, then peruse the insider sales.

Wed, 06/25/2014 - 17:30 | 4895321 rosiescenario
rosiescenario's picture

0 insider buys and 900,000 shares sold during the last 6 months.



Wed, 06/25/2014 - 17:23 | 4895288 Falling Down
Falling Down's picture

Long bath salts.

Wed, 06/25/2014 - 17:26 | 4895296 MedicalQuack
MedicalQuack's picture

Barclays is bad new...look at this from a couple months ago in the UK, they sold their client confidential information, the most confidential information about their clients..thank goodness for a few whistle blowers left around..


Wed, 06/25/2014 - 18:02 | 4895418 Ness.
Ness.'s picture

Shit... Corzine literally used client money to place and cover his personal trades, lost billions, and he still walks around a free and very rich man.  Selling client info is laughable.  That's been going on since Christ was a kid ;)

Wed, 06/25/2014 - 18:10 | 4895443 starman
starman's picture

What's the beyond part of Bed Bath and? Urinals?

Wed, 06/25/2014 - 20:49 | 4896010 Squid Viscous
Squid Viscous's picture

splooging in your boyfriends rectum, i think?

Wed, 06/25/2014 - 18:15 | 4895461 ENTP
ENTP's picture

So my company has a billion dollars and my stock is $50/share.  Since we have zirp, im going to not tap into my real cash and im going to sell bonds, lets just say $250 million at 4.5%.  I use the cash raised to buy back stock and pump it to $75.  I have exhuasted all of the cash from my debt sale, my bonds become due, what do I do?  Sell more debt?  Thank god rates can never go up....

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