Strong Sales, Expense Controls Drive Bed Bath & Beyond Gain

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.

Gross margin in the quarter rose 40 basis points to 43 percent. Temares told the analysts that the increase in gross margin came about due to reduced coupon expenses and a decline in markdowns as a percentage of sales.

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.

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.


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 May digital issue


    May 2017

    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money