Miller Value Partners, an investment management firm, published its “Miller Value Partners Income Strategy” second-quarter 2022 investor letter – a copy of which can be downloaded here. The Miller Income Strategy lost 17.7% in the second quarter of 2022, underperforming the 10.0% decline for the ICE BofA US High Yield Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Miller Value Partners Income Strategy mentioned Bed Bath & Beyond Inc. (NASDAQ:BBBY) and explained its insights for the company. Founded in 1971, Bed Bath & Beyond Inc. (NASDAQ:BBBY) is a Union, New Jersey-based retail-store company with a $461.3 million market capitalization. Bed Bath & Beyond Inc. (NASDAQ:BBBY) delivered a -60.43% return since the beginning of the year, while its 12-month returns are down by -79.63%. The stock closed at $5.77 per share on August 01, 2022.
Here is what Miller Value Partners Income Strategy has to say about Bed Bath & Beyond Inc. (NASDAQ:BBBY) in its Q2 2022 investor letter:
“Bed Bath & Beyond 5.165% 08/2044 declined 67.4% in the period. Bed Bath & Beyond reported 4Q21 sales of $2.05 billion, down 22% Y/Y, missing consensus of $2.08 billion. The company lost $0.92 per share in the quarter, down from 4Q20 adjusted EPS of $0.40, below analyst expectations for EPS of $0.03. Management noted supply chain disruptions and the Omicron variant led to inventory availability challenges, which had an estimated sales impact of $175 million, or 8.5% of 4Q21 net sales, and a 400 basis points (bps) Y/Y contraction in 4Q21 adjusted gross margin to 28.8%, driven by product cost increases and higher than anticipated freight and shipping costs. Additional headwinds in the quarter included general weakness in the retail segment, highlighted by big earnings misses from Walmart and Target, along with Moody’s downgrading Bed Bath’s corporate family rating from B1 to B2. The ratings agency cited increased execution risk of the company’s strategic turnaround initiatives and ongoing supply chain issues weighing on the company’s market share and profitability going forward as the main drivers for the downgrade. However, Moody’s maintained a stable outlook for the retailer due to the financial flexibility provided by the company’s liquidity position and low level of funded debt.”
Our calculations show that Bed Bath & Beyond Inc. (NASDAQ:BBBY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Bed Bath & Beyond Inc. (NASDAQ:BBBY) was in 15 hedge fund portfolios at the end of the second quarter of 2022, compared to 17 funds in the previous quarter. Bed Bath & Beyond Inc. (NASDAQ:BBBY) delivered a -57.94% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Bed Bath & Beyond Inc. (NASDAQ:BBBY) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
