Bed Bath & Beyond Q3 Net Edges Up 1.9 Percent
January 9, 2014,
UNION, N.J.-Third-quarter net income for Bed Bath & Beyond totaled $237.2 million, up 1.9 percent from the third quarter of last year.
Net sales in the quarter, which ended on Nov. 30, rose 6 percent to $2.9 billion, including an increase of 1.3 percent in same-store sales. Gross margin was down 60 basis points as a percentage of sales, to 39.2 percent. In a conference call yesterday to financial analysts, Steven Temares, Bed Bath's CEO, attributed the gross-profit decline to an increase in coupons, which came about because of an increase in both redemptions and the average coupon amount, and to a shift in merchandise mix toward lower-margin products.
Selling, general and administrative expenses rose 4.9 percent in dollars but decreased by 29 basis points as a percentage of sales, to 26.1 percent. Temares said the expense percentage was down due to reduced occupancy, payroll and payroll-related costs.