Essay on Bed Bath&Beyond International Corporation

2021-06-06 18:32:11
3 pages
703 words
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Harvey Mudd College
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Essay
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This company is an American-owned corporation operating in the domestic merchandise stores in Mexico, Canada, Puerto Rico and the United States. Also, it has 300 retail stores in its areas of operation concentrating in approximately 300000 items. The business was established in 1971 and sells products specifically for the bathroom and bedroom, as well as dining and kitchen room. The corporation is included in the NASDAQ-100, Global 1200 and S&P 500 indices ("Bed Bath & Beyond Inc. Facts, Information, Pictures | Encyclopedia.Com Articles About Bed Bath & Beyond Inc," 2). According to the Forbes Magazine, Bed Bath & Beyond is among the Forbes Global 2000 and Fortune 500 as well. The Chief Executive of the company is Steven Temares and has 62000 employees controlled by the headquarters in New Jersey.

The driving force behind its success was the partnership between its founders Warren Eisenberg and Leonard Feinstein. These entrepreneurs had great experience in the retail businesses and established a chain of specialty bath and linen shops known as Bed and Bath back in 1971. From then, the company has experienced outstanding performance regardless of periods of economic recession in the United States as well as other regions where it operates ("Bed Bath & Beyond Inc. Facts, Information, Pictures | Encyclopedia.Com Articles About Bed Bath & Beyond Inc," 2).

Bed Bath and Beyond started trading on the NASDAQ exchange under which the initial public offer for its equities was $17 in June 1992. After that the corporation became a favorite in the Wall Street, which was enhanced by its publicity in the media. Its shares were trading at approximately $32 by May 1993 and announced sales of $216 million with earnings of approximately $15.9 million.

Focusing on the stock performance of the company for the past three months, the opening price of its shares as of 24th February, 2017 was 40.32 at the opening and traded at 41.94 during the closing time with sales volume of 1974768. As of the second week of the month, Bed Bath & Beyond had the highest sales volume at 5188561 when the closing price was 40.33. In the past four weeks the prices of the companys shares has ranged between 38 and 47 USD with the sales ranging between one and five million. This trend has been persisted from November 2016 until the present time.

About the performance of the stocks in the last one year, the average price and volume has been $41.04 with a range of $38.41 to $52.49 and 2.51 million respectively. Also, its shares traded between $76.39 and $58.0 selling approximately 1.8 million shares annually from 2012. Based on the analysis by NASDAQ for the past ten years, the equities of Bed Bath & Beyond Inc had the prices lowest during 2008 and 2009 when the United States was experiencing economic recession. During this period, the shares were trading at an average of $28.9 with the sales being less than one million most of the times ("Bed Bath & Beyond Inc. (BBBY) Stock Chart," 1) However, the other years inclusive of 2007 obeyed the same trend with a mean of $48.78 and 2.7 million in prices and sales respectively.

Considering that the companys equity performance is a reflection of its financial health, the analysis shows how Bed Bath & Beyond has performed over time. About the revenues, the corporation has experienced significant growth from 2007 to 2016 with $6617 and 12160 million respectively. However, there was a decline in its profitability in these periods by 5.5% each year enhanced by the volatility in the Return on Assets, as well increased cost of sales ("Bed Bath & Beyond Inc. (BBBY) Stock Chart," 3)

Apart from merchandising, the company has invested in improving its services by transforming the information and technology sector where mobile application and digital website were developed in 2016 to get feedback from the clients about the quality of their products and areas where improvements are required. Given the expected economic growth in the United States and other regions in 2017 incorporated with healthy financial performance of Bed Bath & Beyond, investing in the institutions shares can generate high returns this financial year.

Works Cited

"Bed Bath & Beyond Inc. (BBBY) Stock Chart". NASDAQ.Com, 2017, http://www.nasdaq.com/g00/symbol/bbby/stock-chart?i10c.referrer=https%3A%2F%2Fwww.google.com%2F.

"Bed Bath & Beyond Inc. Facts, Information, Pictures | Encyclopedia.Com Articles About Bed Bath & Beyond Inc.". Encyclopedia.Com, 2016, http://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/businesses-and-occupations/bed-bath-beyond-inc.

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