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Bed Bath & Beyond Q2 Revenue Up 8.9%

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Home furnishing retailer, Bed Bath & Beyond (NASDAQ: BBBY) said after the market close on Wednesday that earnings rose 11% in the fiscal second quarter, driven by sharp increase in sales.

Shares gained in aftermarket hours as results were better-than-expected. In addition, the company also lifted its low end of the full year earnings guidance by 4 cents a share. BBBY now expects earnings to be in the range of $4.88 to $5.01 a share.

For the current quarter, the Company expects earnings of $1.11 to $1.16 a share while analysts polled by Thomson Reuters had most recently forecasted $1.12 a share. Fourth quarter earnings are expected in the range of $1.70 to $1.77 a share, which is below analysts’ expectation of $1.83 a share.

Bed Bath & Beyond has posted consistent improvement in profits in recent quarters as the retailer has shifted its focus towards lower-margin products.

For the latest period, the retailer posted a net income of $249.3 million or $1.16 a share compared to a profit of $224.3 million or 98 cents a share, in the year earlier quarter.

Revenue climbed 8.9% to $2.82 billion. Same-store-sales, a key gauge on retail chain’s performance, increased 3.7% compared to 3.5% in the year-earlier quarter.

Earlier in June, the Company had provided earnings guidance of $1.11 to $1.16 a share, which was in-line with analysts’ expectation, at that moment. The Company also projected sales to grow by 7% to 9%.

Gross margin fell to 39.4% from 39.8%. Selling, general and administrative expenses rose 8.4%.








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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