Bed Bath & Beyond Inc (NASDAQ:BBBY) shares hit 52-week lows on Wednesday after the company reported weak earnings results and announced a CEO transition. One analyst believes the pain is just getting started.
What Happened: Bed Bath & Beyond's worse-than-expected results didn't come as a surprise for Loop Capital's Anthony Chukumba. He's been bearish on the company for a while, and doubled down on that bet Wednesday during an interview on "Yahoo Finance Live."
When asked if he thought there was a chance Bed Bath & Beyond wouldn't be around in a couple of years, he responded: "Yes and no," and the reason for his mixed response is alarming.
"Yes, we are looking at a situation in which this company is probably not going to be around, but no, it's not going to take years. We could be talking about months at this point. We are in the end days. These results were a dumpster fire," Chukumba said.
Bed Bath & Beyond's quarterly results showed that the company is "clearly" headed for bankruptcy, he said.
The home furnishings retailer reported a fiscal first-quarter revenue decline of 25% year-over-year, which came in below estimates. Bed Bath & Beyond reported a quarterly adjusted earnings loss of $2.83 per share, which also missed the estimate for a loss of $1.39 per share.
Many retail investors developed a renewed interest in Bed Bath & Beyond stock in March after Chewy Inc (NYSE:CHWY) co-founder and GameStop Corp (NYSE:GME) chairman Ryan Cohen acquired a 9.8% stake in the company and immediately pushed for changes. However, Chukumba tells a different story.
"Clearly Ryan Cohen was bored one day, he went on to WallStreetBets, he saw people talking about Bed Bath & Beyond, he decided to buy a big stake," he said. "Everything that Ryan Cohen has said to this point has been nonsensical."
"The notion that this guy is the next Warren Buffett or Carl Icahn is an insult to Warren Buffett or Carl Icahn. He's lost a ton of money and he's going to lose it all. Every single penny. This company is going bankrupt."
See Also: What's In Ryan Cohen's Portfolio? Just These Two Stocks
Why It Matters: This isn't the first time the Loop Capital analyst has warned investors about the struggling retailer. Ahead of the company's quarterly report in April, Chukumba predicted that Bed Bath & Beyond's earnings would be "very, very terrible." The stock fell more than 10% following the report.
Now after another consecutive quarter of disappointing results, Chukumba believes Bed Bath & Beyond's days are numbered.
"Let's not get it twisted," he said. "This company was in a lot of trouble even when things were good. Now that things are bad, you know, it's game over."
BBBY Price Action: Bed Bath & Beyond has a 52-week high of $39.30 and a 52-week low of $5.94.
The stock closed at $4.99, down by 23.58% on Wednesday, according to Benzinga Pro.
Photo: ajay_suresh from Flickr.
