Sales, Margin Growth Fuel Bed Bath's Q2 Net Increase

UNION, N.J.-Robust gains in sales and margins boosted Bed Bath & Beyond's second-quarter net income to $229.4 million, 26 percent ahead of the second quarter of last year.

Net sales finished the quarter, which ended on Aug. 27, at $2.3 billion, up 8.3 percent over last year's second quarter. This included a gain in same-store sales of 5.6 percent, on top of Bed Bath's same-store increase of 7.4 percent in the second quarter of a year ago. Gross margin rose 15 basis points to 41.1 percent.

In a note on the results, Brad Thomas, retail analyst with Keybanc Capital Markets, said, "The company continues to execute at a high level with solid sales growth and enviable margin expansion despite mix and inflationary headwinds." Thomas said the results on both the top and bottom lines exceeded expectations of both Wall Street and even Bed Bath's management. He added that Wall Street expectations were for a 20 basis-point decline in gross margin.

The home specialty retailer was also able to keep expenses in line. Selling, general and administrative expenses were relatively flat on a dollar basis and dropped 201 basis points as a percentage of sales, to 25 percent.

Thomas said Bed Bath expects third-quarter net sales to rise in the range of 5 to 7 percent, with comp-store sales up 2 to 4 percent. For the fourth quarter, sales are projected for an increase of 4 to 6 percent, with same-store sales rising 2 to 4 percent.

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.


  • Patti Carpenter Talks Color and its Importance in the Home

    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 August 2017 cover


    August 2017

    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.