What happened
Shares of Bed Bath & Beyond (BBBY +0.00%) are soaring 20% higher at 11:11 a.m. ET on Tuesday on a day when the S&P 500 is up 41 points, or just over 1%, in comparison.
The surge in the home goods retailer's stock follows a report in The Wall Street Journal this morning noting Bed Bath & Beyond, along with other troubled retailers, has secured financing in recent weeks to make it through the holiday season.
Image source: Getty Images.
So what
While the Christmas shopping season is expected to see sales rise compared to last year, as much as 4% to 6%, inflation is ravaging consumer wallets. Even Amazon's recent second Prime Day sale, called the Prime Early Access Sale, was a relatively muted event compared to the summer extravaganza. Many sellers reported only low-priced goods were moving and sales were only up 15% versus a typical, non-sales-event Tuesday and Wednesday.
Yet the Journal story wasn't all that positive for Bed Bath & Beyond, pointing out that retailers such as it and Tuesday Morning were "among those most at risk of running short of cash without stellar holiday sales," according to analysts.
OTC: BBBY
Key Data Points
It did note that Bed Bath & Beyond had increased its credit line last month so that it now has some $1 billion in liquidity available to it.
Now what
Almost 40% of Bed Bath & Beyond's stock is still sold short, making it one of the most heavily shorted stocks on the market, meaning any positive movement could result in short-sellers covering their positions. While the move is not one necessarily related to a short squeeze, the home goods retailer only needs a few additional good news reports and one could quickly materialize.
