BBB net earnings leap in Q1
Retail Editor 3 -- Home Textiles Today, June 23, 2011
Union, N.J. - Bed Bath & Beyond's 38% increase in first quarter net earnings exceeded plan, but ceo Steven Temares warned of "a number of economic challenges [that] persist, including higher commodity prices, relatively high unemployment, a sluggish housing market, and fragile consumer confidence."
Net earnings for the quarter ended may 28 were $180.6 million, or 72 cents per share, compared to the $137.6 million, or 52 cents per share, in the same quarter a year ago.
Sales climbed 9.7% to $2.110 billion, with comps up 7.0% on top of an 8.4% increase last year.
Among the highlights in the quarter were the retailer's bridal, baby and gift registries, which Temares said "afford us additional opportunities to attract new customers to Bed Bath & Beyond."
Based on first quarter results, Bed Bath & Beyond is now forecasting 2Q earnings per share of 77 to 82 cents and a 15% to 20% increase in EPS for the full fiscal year.
The company ended the quarter with 1,149 stores -- 985 Bed Bath & Beyonds across the 50 states, D.C., Puerto Rico and Canada; 67 Christmas Tree Shops; 52 buybuy Baby units; and 45 Harmon or Harmon Face Value stores. And the company continues to be a partner in a joint venture with two stores in Mexico City under the name Home & More.
This year, BBB plans to open a total of 40 to 45 new stores across all of its concepts, but "slightly more" will be buybuy Baby stores and "slightly fewer" will be BBB units.
Long term, the company reiterated it sees to potential for an excess of 1,300 BBB stores as well as continued growth of its Christmas Tree Shoppes and its buybuy Baby stores - "from coast to coast" in the U.S. and Canada.
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