Bed Bath & Beyond Inc. (NYSE:BBBY) shares rose in premarket trading Tuesday after the company reported quarterly results that met profit expectations and topped revenue estimates.

Earnings Snapshot

The company on Monday posted an adjusted loss of 25 cents per share, in line with analyst estimates, according to Benzinga Pro data. Revenue came in at $247.76 million, ahead of the $240.09 million consensus estimate.

Bed Bath & Beyond reported a 7% year-over-year increase in revenue, marking its first growth in 19 quarters despite exiting Canadian operations.

The company said it achieved its lowest operating cost structure in more than 12 years, contributing to a $5 million improvement in adjusted EBITDA and a $24 million reduction in net loss.

Average order value rose 6% during the quarter, while delivered orders increased about 1%. Adjusted EBITDA reflected a loss of $8 million, improving 41%, or $5 million, from a year earlier. The company ended the period with $163 million in cash, including cash equivalents and restricted cash.

F9 Brands Acquisition

Earlier this month, Bed Bath & Beyond confirmed it will acquire F9 Brands for nearly $150 million as part of its expansion into home services. The transaction is expected to close after the company's annual shareholder meeting in May 2026.

F9 Brands generated approximately $522 million in sales in 2025. Bed Bath & Beyond expects the acquisition to enhance customer engagement and increase average transaction sizes.

Outlook And Strategy

During the earnings call, management said the F9 Brands deal is expected to contribute more than $500 million in revenue. As part of The Container Store integration, the company highlighted about 100 locations totaling 2.2 million square feet and aims to boost productivity from roughly $220 to $500 per square foot within 24 months, and to $615 over the longer term.

The company is targeting blended margins of 35% to 37% for general merchandise and over 60% for home services, with an overall goal above 40%. It also reiterated a long-term EBITDA margin target of 6% to 7%.

Bed Bath & Beyond said it is advancing a three-pillar strategy spanning omnichannel retail, product and financial services, and home services, supported by acquisitions including Kirkland's and The Container Store.

The company plans to eliminate $60 million in costs over the next nine months while leveraging data and AI to improve efficiency and customer engagement.

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $7.50. Recent analyst moves include:

  • Piper Sandler: Neutral (Lowers Target to $8.00) (Feb. 24)
  • Wedbush: Outperform (Lowers Target to $7.00) (Feb. 18)
  • Barclays: Equal-Weight (Raises Target to $8.00) (Oct. 28, 2025)

BBBY Price Action: Bed Bath & Beyond shares were up 31.46% at $7.020 during premarket trading on Tuesday, according to Benzinga Pro data

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