Bed Bath & Beyond Net Climbs 11.1 Percent in Q2

Bed Bath & BeyondUNION, N.J.-With sales continuing on the upswing, Bed Bath & Beyond logged an 11.1 percent gain in second-quarter net income, to $249.3 million.

Net sales rose 8.9 percent to $2.8 billion in the quarter, which ended on Aug. 31. As Steve Temares, Bed Bath & Beyond's CEO, explained yesterday in a conference call to analysts, the top line benefited from the inclusion of sales from World Market, which was acquired last year and which accounted for 43 percent of the sales increase. In addition, same-store sales rose 3.7 percent in the quarter, and new stores accounted for about 18 percent of the sales gain, Temares said.

Gross margin declined by 39 basis points to 39.4 percent, due to an increase in coupons, a rise in coupon redemptions and average coupon amount, and a shift in the sales mix to lower-margin product categories. Selling, general and administrative expenses gained 8.4 percent in dollars but were down 11 basis points as a percentage of sales, to 25.6 percent.

For the remainder of the fiscal year, enhancing its omnichannel capabilities will be a crucial endeavor for Bed Bath & Beyond, Temares told the analysts. He cited the new websites for Bed Bath & Beyond and buybuy Baby, debuted during the second quarter. "Also," he added, "we will continue to upgrade our mobile sites and apps, enhance network communications in our stores, as well as develop future point-of-sale improvements and grow and develop our IT, analytics, marketing and e-commerce groups to lead our omnichannel initiatives."

Also during the conference call, Eugene Castagna, chief financial officer, said Bed Bath & Beyond is projecting third-quarter sales increase of from 6 to 8 percent, along with a 1 to 3 percent gain in same-store sales.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017

    HFN's DIGITAL EDITION

    September 2017


    COVER STORY:

    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    ALSO IN THIS ISSUE:

    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.