MarketFoolery: 06.21.2012
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 21 June 2012
⏱️ 18 minutes
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Summary
Shares of Bed, Bath, and Beyond tumble. Starbucks announces plans to open a tea store.
Transcript
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| 0:00.0 | It's Thursday June 21st. Welcome to Market Fullery. I'm Chris Hill joining me in studio today from Motley Full Stock Advisor, Jason Moser and from Motley Fool Pro Brian Hem and gentlemen. Happy Thursday. |
| 0:12.3 | Hey hey Chris? |
| 0:13.0 | It's hot out there. |
| 0:14.0 | I mean, I think it was a week or two ago. |
| 0:15.0 | I was like, wow, it would be great if we could have class outside today. |
| 0:19.0 | So happy to be in the studio today. |
| 0:21.0 | And we are going to wrap up the week with a couple of retailers, one of them |
| 0:24.4 | in trouble, one of them expanding, and we will also dip into the full mail bag. Let's start |
| 0:29.6 | with the struggling retailer, Bed Bath and Beyond, shares down more than 15% this morning. |
| 0:36.0 | Jason? I don't understand. Earnings came in better than expected. What's the problem here? |
| 0:41.0 | Yes, earnings did come in better than expected and before today |
| 0:45.9 | it didn't really seem to be struggling but it looks like bed, bath, and beyond has |
| 0:49.8 | come down with a slight case of Amazonitis. |
| 0:53.0 | Yeah, I mean, earnings were okay, but it's their guidance going forward that I think has everybody |
| 0:58.4 | spooked and that's why people can't leave the building fast enough. |
| 1:01.8 | Margins are coming down, |
| 1:02.8 | gross margins are coming down because they're having |
| 1:04.9 | to sell their stuff for cheaper prices. |
| 1:07.8 | And the reason they have to do that |
| 1:09.8 | is because they're competing with other |
| 1:11.4 | other low-cost providers at there such as Amazon. |
| 1:14.4 | The the experience of going into something like a bed bath and beyond I think is |
... |
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