Bed, Bath & Beyond Buybacks

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.


No comments yet! Be the first to add yours.