While omnichannel retailer Bed Bath & Beyond (BBBY) has been underperforming lately on account of its shrinking store base and higher losses, its home goods retail peers –The TJX Companies (NYSE:TJX), Newell brands (NWL), and Tempur Sealy International (NYSE:TPX) – have been see significant sales growth. Given the increased demand for home improvement products, these stocks are well positioned to see upside in the near term.As the focus on improving living spaces has increased amid the pandemic because of the increased amount of time spent indoors, demand for home improvement products has skyrocketed. However, specialty retailer Bed Bath & Beyond Inc. (BBBY) has not been able to capitalize on the industry tailwinds lately.
The company recorded an operating loss of $71.87 million and a net loss of $50.87 million in the last reported quarter. Over the past month the stock has dropped 15.1%, reflecting a poor forecast for the company's future performance. Moreover, the company's increasing store closures and divestments may hurt its revenue generating prospects in the near term.
Meanwhile, BBBY’s peers have taken full advantage of the growing demand for home improvement products and have delivered stellar returns. The TJX Companies, Inc. (TJX), Newell Brands Inc. (NWL), and Tempur Sealy International, Inc. (TPX) are expected to see a boost in sales as they are ramping up manufacturing capacity to meet rising demand. Hence, we believe these companies can be better bets given their tremendous growth prospects and expanded capabilities.