Bed, Bath & Beyond (BBBY) will report fourth quarter results after the bell.
The company has missed estimates on the top and bottom line three quarters in a row.
Much like the entire retail sector, BBBY is struggling with weak sales at its brick and mortar stores due to soft traffic in the face of online competition.
Fourth quarter same store sales are expected to be slightly positive after falling just over 1% two quarters in a row.
In December, the company reported quarterly comparable sales from digital channels grew in excess of 20% while comparable sales from stores declined in the low single-digit percentage range for the third straight quarter.
Bed Bath & Beyond acquired online properties One King's Lane and Pmall.com to offset the falling retail comps last year.
The company has also aggressively bought back its stock, reducing the shares outstanding by nearly 20% over the last two years. The company bought back $375 million in stock through the first three quarters after buying back a whopping $1.1 billion in fiscal 2016.
Looking at the full year, same store sales are expected to fall just under 1% after growing 1% in fiscal 2016. Earnings per share are expected to be slightly higher this year (FY18) with comps up 0.6%.
Bed, Bath & Beyond's market cap is just shy of $6 billion. The stock trades at 5x EV/EBITDA or 8.8x earnings estimates. The average for a group of retailers is 7x and 15.2x, respectively.