Bed, Bath & Beyond . . . and beer?
After buying Cost Plus World Market earlier this year, the home goods seller may be looking to expand alcohol sales.
Alcohol sales might be just what the company needs. It doesn't have any momentum online, and shares fell in June when it disappointed investors with its outlook. Sales growth is slowing, and customers are becoming too reliant on coupons, which is cutting into profitability.
Bed, Bath & Beyond tried to revive business by acquiring Cost Plus World Market in May for about $500 million. Cost Plus World Market has brisk sales of beer and wine, and Bed, Bath & Beyond may want to expand alcohol sales into its other stores.
So far, the company is mum on those plans. The Chicago Tribune reports that one Bed, Bath & Beyond in Schaumburg has applied for the right to sell beer, wine and food. But a company spokeswoman wouldn't say how many other stores already sell alcohol or will apply to do so.
The company is also requesting the right to offer wine and beer tastings at the Schaumburg location, the Tribune reports.
So will beer and wine sales work? Will shoppers go for the new offering, or is the idea of buying a six-pack along with a new comforter just too jarring?
The company reported mixed results for the quarter ended May 26. Its earnings of 89 cents a share beat analyst expectations of 84 cents, but its revenue of $2.22 billion was slightly down from expectations of $2.24 billion.
The real downer was the company's forecast for the current quarter. It expects to earn 97 cents to $1.03 a share, less than the $1.08 analysts expected. Even though the stock tumbled after that forecast, shares have still been on an impressive climb, rising more than 28% in the past year. Shares were up more than 1% Wednesday to $66.91.
You can hear more about the quarterly results in the following video.
Still not going to shop their I'm sure the beer will be overpriced too
Have been selling food products for almost a year now and beer & wine for a couple months already in the San Diego store.
"The company is also requesting the right to offer wine and beer tastings at the Schaumburg location"
Well alright then, where is schaumburg?
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