Bob's Discount Furniture Expected to Deliver Steady Q3 Results, RBC Says

MT Newswires Live10-26

Bob's Discount Furniture (BOBS) is likely to post steady Q3 results as sales trends remain stable, though the outlook is cautious amid mounting inflationary pressures, RBC Capital Markets said Monday in a report.

RBC's industry checks indicated that furniture and home furnishing sales are running mostly flat with Q2, and the firm expects comparable sales growth of 2% and six store openings during the quarter.

RBC models Q3 gross margin expansion of about 20 basis points to 46.2%, helped by selective pricing actions and a continued shift toward higher-end products.

Synchrony Financial's (SYF) transition to becoming Bob's primary financing partner in Q2 is expected to provide a tailwind in H2, the report said.

Q3 results are due Nov. 5.

RBC reiterated its outperform rating on Bob's stock with a $22 price target.

Price: 16.02, Change: -0.26, Percent Change: -1.60

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