NEW YORK (TheStreet) -- Has the home furnishings wave rolled over?
Bed Bath & Beyond (BBBY) reports fiscal second-quarter earnings after markets close on Tuesday and consensus estimates are calling for earnings of $1.14 a share on revenue of $2.89 billion, an increase of just 2% from last year, according to Thomson Reuters. Same-store sales are expected to rise 1.5% for the fiscal second quarter, according to Consensus Metrix.
Analysts have been concerned about the strong competition that Bed Bath & Beyond and other stores including Pier 1 Imports (PIR) and Williams-Sonoma (WSM) face from online rivals as well as the increasingly promotional environment for the home furnishings industry as a whole.
Must Read: 10 Stocks Carl Icahn Loves in 2014
Bed Bath & Beyond shares have declined 14.8% over the past 12 months. Shares were down 0.9% to $63.12 on Tuesday. Here's what analysts said ahead of Bed Bath & Beyond's earnings.
Kate McShane, Citigroup (Neutral; $70 PT)
We believe conference call topics will center around: 1) SSS momentum, 2) extent of couponing and promotions, 3) update on e-Commerce investments, 4) competitive environment, and 5) updates to guidance.
We remain on the sidelines until BBBY can reverse the decelerating comp trend and see its gross margin improve on less coupon dependence from its customers. The tech investments may eventually pay off but may also continue to pressure BBBY's operating margin unless the company sees a significant sales lift.
Must Read: Here's How to Trade Bed, Bath Beyond Ahead of Earnings Today