Strong Sales, Expense Controls Drive Bed Bath & Beyond Gain
April 7, 2011,
UNION, N.J.-Thanks to a significant gain in net sales and the company's wary eye on expenses, Bed Bath & Beyond closed its fiscal year with a 25 percent increase in fourth-quarter net income, to $283.5 million.
Net sales in the quarter, which closed on Feb. 26, rose 12 percent to $2.5 billion. While selling, general and administrative expenses rose 5.2 percent in dollars, they shed 149 basis points as a percentage of sales to 24.6 percent. In a conference call to financial analysts yesterday, Steven Temares, Bed Bath & Beyond's CEO, said the chain benefited from lower costs for payroll and occupancy as a percentage of sales, and decreased advertising expenses.
The fourth quarter brought a finish to a fiscal year in which Bed Bath & Beyond's net income jumped 32 percent, to $791.3 million. Net sales for the fiscal year increased 12 percent to $8.8 billion.