Bed Bath & Beyond Inc. (BBBY) to Maintain Market Share and Cash Flow While Online Retail Trend Unfolds

June 20, 2014

Joe Costigan, Director of Equity Research at Bryn Mawr Trust Company, says his firm looks to invest in businesses that have consistently performed well over time, and that Bed Bath & Beyond Inc. (BBBY) is one of those.

“We like Bed Bath & Beyond because they are conservatively financed; most of their assets are in form of inventory; they mitigate balance sheet risk by leasing their stores; and they have demonstrated an ability to put competitors out of business,” Costigan said.

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While is firm is generally wary of brick-and-mortar retailers, Costigan believes the trend toward online retailing will take years, and while that plays out, strong competitors like Bed Bath & Beyond will see continued success.

Bed Bath & Beyond will be able maintain market share and their cash flow,” Costigan said. “Consequently we view BBBY as a business that is both conservatively financed and has a demonstrated ability to grow.”