BBBY Stock Pares Early Gains Driven By Strong Q1 Report – Why Is Wedbush Optimistic About The Company’s Turnaround Story?

• Wedbush expects at least $40 million in annual cost savings and efficiency gains for Bed Bath & Beyond within 12 to 18 months.
• CEO Marcus Lemonis highlighted a multi-year turnaround plan that is starting to deliver results, as the company reported its first quarterly sales growth in nearly five years.
• BBBY shares breached the 200-DMA for the first time in more than three months.

Shares of Bed Bath & Beyond (BBBY) pared most of their early gains to trade 5% higher on Tuesday, even as analysts remained bullish following its first revenue growth in nearly five years, signaling strong momentum in its turnaround story.

The stock had climbed more than 30% in early trade on Tuesday. BBBY shares also breached their 200-day moving average (200-DMA) for the first time in over three months.

Source: TradingView

Wedbush Expects $40M In Annual Cost Savings, Efficiency Gains

Wedbush raised its price target on Bed Bath & Beyond to $8 from $7 and maintained an ‘Outperform’ rating, citing improving fundamentals, according to The Fly. The firm said the company posted its first year-over-year growth since starting its restructuring, showing that its turnaround efforts are now beginning to boost revenue.

Looking ahead, Bed Bath & Beyond plans to accelerate growth and margins by integrating its newly acquired home assets into a broader platform. Wedbush also expects at least $40 million in annual cost savings and efficiency gains within 12 to 18 months.

Operating Expenses Lowest In A Decade

On Monday, the company reported a nearly 7% increase in first-quarter (Q1) revenue to $248 million, while posting a loss of $0.24 per share. Both figures came in better than Street expectations; analysts had expected $244.9 million in revenue and a $0.28 per-share loss, according to Fiscal AI data.

During the earnings call, CEO Marcus Lemonis highlighted a multi-year turnaround plan that is starting to deliver results, as the company reported its first quarterly sales growth in nearly five years. He said the past two years were focused on streamlining operations and cutting inefficiencies across staffing, systems, and marketing.

Operating expenses have now dropped to their lowest level in more than a decade, reflecting the impact of those efforts. Lemonis added that customer acquisition has become more efficient, with stronger engagement through the company’s own channels.

How Did Retail Traders React?

Retail sentiment on Stocktwits flipped to ‘extremely bullish’ from ‘bearish’ a day earlier, amid ‘extremely high’ message volumes.

One Stocktwits user urged buying the dip.

The stock has edged 0.2% lower so far in 2026.

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