But Amazon.com, Inc. (NASDAQ:AMZN) isn’t a big threat to Bed Bath & Beyond Inc. (NASDAQ:BBBY), which is growing its online presence in an effort to attract more web shoppers. And, its brick-and-mortar stores give the company an edge over Internet-only sites for shoppers who “want-it-now,” and shoppers wanting an in-person “look and see.”
Target Corporation (NYSE:TGT) presently sees gains North of the border. The first three Target stores to open in Canada attracted larger-than-expected crowds. In late March, the U.S.-based retailer opened 17 more locations in Canada to warm receptions. “We thought there would be an initial bump. The bump has not leveled off to the degree that we thought,” executive John Morioka said in a statement.
More good news for Target Corporation (NYSE:TGT) in the U.S. is Wal-Mart Stores, Inc. (NYSE:WMT) struggles to keep shelves fully stocked and checkout lines well-staffed, Bloomberg reports.
But the troubling news is that Target has lost some of its cache amid a changing landscape in retail. J.C. Penney Company, Inc. (NYSE:JCP) and Kohl’s Corporation (NYSE:KSS) are treading on Target’s turf and venturing beyond apparel.
While Target has morphed into a true superstore, selling everything from groceries to garden supplies, customers have moved away from purchasing its more profitable apparel items and home goods.
For home goods, they are going to Bed Bath & Beyond Inc. (NASDAQ:BBBY).
Upgrades boost shares
With the housing market showing some real signs of recovery, and consumer confidence edging up a bit, Bed Bath & Beyond Inc. (NASDAQ:BBBY) stands to benefit. Americans are eager to spend more on sprucing up their homes as many are foregoing vacations and spending more time at homes.
That’s why two Wall Street firms just upped their outlook on the company’s shares, which are trading just shy of a 52-week high.
Bed Bath & Beyond Inc. (NASDAQ:BBBY) has been profitable for the last eight quarters, Forbes reports. And for the last four quarters, profits have grown year-over-year by an average of 24%. Last quarter, the company posted a whopping 81% increase.
The majority of analysts (62%) have a “buy” on shares. That’s better than analyst ratings of its three closest competitors, which average 45% “buys.”
I often find myself in Bed Bath & Beyond and Harmon stores thanks to their competitive prices and coupons. Stores are always busy, staff is always friendly and selections are plentiful. Watching customers come and go, almost all leave with packages in tow.
Online sites are clean, easy to navigate and changing to offer more . The company’s e-commerce push could account to 10% of sales by 2015, up from its current 2%, according to Canaccord Genuity.
Market participants looking for a clean investment don’t need to look beyond Bed Bath & Beyond.
Diane Alter has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Bed Bath & Beyond. The Motley Fool owns shares of Amazon.com. Diane is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Looking Beyond Bed Bath & Beyond’s Earnings originally appeared on Fool.com is written by Diane Alter.
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