Bed Bath & Beyond stock was hit hard today, dropping almost 17% to close near US$4.60, after a run of weak short term returns over the past week and month. The immediate verdict from traders was clear. The headline from the earnings print was not.

Q2 showed revenue of about US$361 million and another quarterly loss, with basic earnings per share still firmly in negative territory. The bigger story for long term investors sits on the balance of that loss profile against a low price to sales multiple and management’s push to reshape the business into a broader home platform.

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