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Bed, Bath & Beyond shares dip despite beating street

BY DSN STAFF

When do good financial results turn bad?

Just ask officials at Bed, Bath & Beyond. The beleaguered home furnishings retailer, which also owns Harmon, posted earnings that beat estimates on Thursday. The result? A $3 drop in its stock price to around $21 a share. The company’s shares were in the low $80 range as recently as two years ago.

Edison, N.J.-based Bed, Bath & Beyond posted earnings of 44 cents per share, beating consensus estimates by about 8 cents. Revenues for the quarter were $3 billion, slightly ahead of sales in the same quarter in 2016. Comparable store sales increased by ahead by about 0.3%.

Industry observers say that the company has been particularly hard hit by Amazon.com and has implemented a number of costly promotional programs to regain market share and sales. While sales rose slightly in the quarter, many believe it is at the expense of profits, thus dropping the value of the company and its stock price.

“They are doing the right things,” said one industry observer. “The problem is that it costs a lot of money to compete with Amazon and the other digital retailers. That impacts the bottom line and that is what we are seeing here. Expect more of this before things flatten out.”

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Amazon’s private-label products pull in nearly $450M in 2017

BY Deena M. Amato-McCoy

Private label has become big business for Amazon in 2017 — and momentum continues to grow.

The online giant used 2017 to refine its private-label strategy — a move that helped the company launch over 30 new brand names across highly competitive categories. As a whole, these private-label brands generated roughly $450 million in sales in this year, according to “Amazon Private Brands: Year-End Review,” a study from One Click Retail.

Momentum is being driven by the company’s AmazonBasics brand, a line primarily known for affordable home tech accessories, including computer cables, batteries and home office supplies. However, this line has expanded to include an assortment of products from linens and luggage to pet supplies and water filters. Overall, AmazonBasics makes up about 85% of Amazon’s total private-label sales, and accounts for over $400 million in sales.

The online giant’s fastest-growing private-label line is the Amazon Elements brand, which primarily sells baby wipes. The wipes are so successful that sales nearly doubled 2016 estimated sales, with a growth of 94% year-over-year (YoY). The estimated $15 million sold in 2017 across baby wipes alone makes up the vast majority of the Amazon Elements products, supplemented by just over $1 million in estimated sales of Vitamins and Supplements.

A great deal of private brand growth can be traced back to Amazon’s acquisition of Whole Foods. In late August, Amazon’s release of Whole Foods’ 365 Everyday Value brand on the platform has had a major impact. It has consistently sold as the No. 2 private brand – behind only AmazonBasics – and currently ranks as the fourth top-selling private brand year-to-date (YTD), despite being available for just over three months. The line has an estimated $10 million in sales since its launch and an average weekly growth of 9%, according to One Click.

“2017 was Amazon’s most successful year yet, both as a platform and as a manufacturer, this should be an eye-opener for competitors,” Spencer Millerberg, One Click CEO, said in the report. “The basics are key, such as keeping Amazon Standard Identification Numbers (ASINs), a 10-character alphanumeric product identifier assigned by Amazon, on site longer is critical. For example, the top-selling printer is now three years old.”

And at a time when over 50% of product-related searches begin on Amazon, search promotion is no longer optional. “Over 90% of purchases begin with search, so optimizing your pages for organic search (eComm SEO) is critical,” he said. “Amazon is an amazing platform – and more than ever we must think of Amazon as both a partner and a competitor.”

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FDA approves expanded indication for Pfizer’s Bosulif

BY DSN STAFF

The Food and Drug Administration has approved a new indication for Pfizer’s Bosulif (bosutinib). The drug is now indicated to treat patients with newly diagnosed chronic-phase Philadelphia chromosome-positive chronic myelogenous leukemia, or Ph+ CML. The approval marks the third approval for hematology in five months for Pfizer, the New York City-based company said.

“Bosulif was Pfizer’s first treatment for hematologic malignancies, and has since become an important treatment option for Ph+ CML patients who are resistant or intolerant to previous therapy. This expanded indication has the potential to make an even greater impact on the lives of patients with CML,” Pfizer Oncology global president Liz Barrett said. “Today’s news marks the third FDA approval for a Pfizer hematology medicine in just five months, a significant achievement that reinforces our commitment to patients living with blood cancers.”

Bosulif was first approved in September 2012 to treat patients with chronic-, accelerated- or blast-phase Ph+ CML with resistance or intolerance to prior therapy. 
 

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