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Home-good superstore Bed Bath & Beyond’s quarterly profit exceeded Wall Street’s expectations with online sales surging despite a drop-off at its brick-and-mortar locations.
The company reported net earnings per diluted share of $1.84 for the three-month period ending February 25, on an overall net income of $268.7m, compared to the $1.77 per share and $259.1m profit that analysts surveyed by Bloomberg had expected. It nevertheless represents a decline from the same period a year ago, when earnings per share came in $1.91 per diluted share and net income of $303.5m.
By contrast, quarterly revenue was up 3.4 per cent from the year-ago period, to $3.5bn, in line with Wall Street’s expectations.
Overall comparable sales increased 0.4 per cent during the fourth quarter, BB&B said, with a 20 per cent increase from customer-facing digital channels and just managing to offset a low single-digit percentage decline at sales from physical stores during the quarter.
The company’s shares ticked up by just over 1 per cent in after-hours trading.
BB&B chief executive Stevene Temares said in a statement:
During fiscal 2016, we made significant investments to evolve our Company and advance our mission to be trusted by our customers as the expert for the home and ‘heart-related’ life events by continuing to build and deliver a strong foundation of differentiated products, and services and solutions for customers, while driving operational excellence.