Bed Bath & Beyond Meets Modest Guidance
September 29, 2008,
Union, N.J. —Even while second-quarter earnings slumped 19% on flat comps, specialty retailer Bed Bath & Beyond met its projections — and maintained its full year guidance — thereby winning over investors last week.
For the quarter, net earnings of $119.3 million or 46 cents per diluted share in the quarter ended Aug. 30 fell 18.8% from $147.0 million or 55 cents per diluted share (down 16.4%) in the same quarter one year ago.
Sales rose 4.9% to $1.85 billion in the quarter, but comp store sales edged down 0.1%.
For the fiscal first half, BBB reported net earnings of $196.0 million or 76 cents per diluted share, down from $251.7 million or 92 cents per diluted share a year ago.
Six-month sales grew 5.5% to $3.50 billion, as comps inched up 0.3%, BBB said.
The company is sticking to its store opening plans, with about 50 BBB units slated for 2008, along with a handful of buybuyBaby stores and a dozen new Christmas Tree shops.
Wall Street rewarded the on-forecast performance the day of the announcement by sending the share price up more than 3% on roughly average trading volume.