Bed Bath & Beyond Net Jumps 34 Percent in Second Quarter
UNION, N.J.-Second-quarter net income for Bed Bath & Beyond increased by a powerful 34 percent in the second quarter, totaling $181.8 million.
The retailer's net sales reached $2.1 billion in the quarter, up 12 percent, including a healthy 7.4 percent gain in same-store sales. Gross margin rose 56 basis points to 40.9 percent. While selling, general and administrative expenses increased by 5 percent, they dropped 170 basis points as a percentage of sales, to 27.1 percent.
Discussing the results on a conference call yesterday, Steve Temares, chief executive officer, said the second quarter exceeded Bed Bath & Beyond's expectations. Temares also said the company views the rest of the year cautiously due to "persistent high unemployment and uncertainty in the economy," which "could continue to pressure consumers and affect their spending."
Also, on the conference call, co-chairman Warren Eisenberg said Bed Bath & Beyond is benefiting from its efforts to grow its merchandise offerings and increase the productivity of its existing stores. In addition, Eisenberg said the opportunity has opened for the company to increase the number of Bed Bath & Beyond stores from its current level of 973 to more than 1,300 in the United States and Canada. The company is also looking to increase the number of Christmas Tree Shops, buybuy Baby stores and Harmon and Harmon Face Value stores.