Bed Bath & Beyond Posts Powerful Profit Gain
January 7, 2010,
Union, N.J. - Driven by a hefty 7.3% increase in same store sales for the third quarter ended Nov. 28, Bed Bath & Beyond posted net earnings of $151.3 million, or 59 cents per share, up 72.5% and 70.6% respectively.
Net sales for the nine months year-to-date climbed 5.7% to $5.585 billion. Comparable store sales were up 1.7% in the period.
All figures showed an acceleration of good news. For example, the 72.5% rise in Q3 net income was more than double the year-to-date rise of 31.8%, and an 80.0% boost in Q3 operating income (to $245.6 million) was more than double the YTD increase of 37.8% (to $609.9 million).
Bed Bath & Beyond management warmed Wall Street’s heart overnight by announcing at close of business yesterday its upwards-revised forecast for Q4 and full year earnings. The company now estimates that it will earn 67 cents to 71 cents per share for the fiscal fourth quarter and $2.11 to $2.15 per share for the full fiscal year.
The strong results and bullish outlook combined to drive BBB stock up to a share price of about $43 today, up a sold 10% from yesterday’s close of just above $39.
By merchandise division, BBB said domestics accounted for 42% of Q3 sales, compared to 43% one year ago, while home furnishings edged up to 58% from 57% of sales. Similarly, in the nine-months period, domestics made up 43% of sales, down from 44%, with a corresponding rise in home furnishings to 57% from 56%.