Bed Bath & Beyond Q3 profit climbs 28%, beats Street
Union, N.J. — Bed Bath & Beyond said Wednesday that profit for the quarter ended Nov. 27 rose 28% to $188.6 million, compared with $151.3 million in the year-ago period.
Results topped analyst expectations.
Revenue rose 11% to $2.2 billion, edging Wall Street expectations of $2.11 billion in revenue. Same-store sales increased 7%.
The company had 1,127 stores at the end of the quarter. Bed Bath & Beyond opened five of its namesake stores, five Christmas Tree Shops stores and seven buybuy Baby stores during the quarter.
Christopher & Banks swings to loss in Q3
Minneapolis — Christopher & Banks Corp. reported Wednesday a net loss of $9.2 million for the third quarter, compared with a profit of $7 million in the year-ago period.
Sales dropped to $120.9 million from $132 million in the prior year. Same-store sales decreased 7%.
“We are clearly disappointed with our performance for the third quarter,” said Larry Barenbaum, interim president and CEO. He added that the company expects fourth-quarter improvements, resulting in same-store sales that are flat to up low single digits as compared with the fourth quarter of last year.
Bed Bath & Beyond expectations in third quarter
Less than desirable economic conditions don’t seem to faze Bed Bath & Beyond, which again this week reported another quarter of strong financial results. The company said its earnings per share for the third-quarter period ended Nov. 27 increased 28% to 74 cents, handily exceeding analysts’ consensus estimate of 66 cents. Sales increased roughly 11% to $2.2 billion and same store sales advanced 7% on top of a prior-year comp increase of 7.3%.
The earnings beat and strong comp figures coupled with the announcement of a new $2 billion share repurchase program drove shares of the company to a new 52-week high above $50.
“Although economic challenges persist, our fundamental business strategy has remained unchanged. To offer a broad assortment of merchandise at every day low price with superior customer service,” CEO Steve Temares said during a conference call. “As always, we will continue to work to enhance our customers’ overall shopping experience and we remain committed to being our customers’ first choice for the merchandise categories we offer domestically, interactively and over the longer term, internationally.”
After opening a total of 32 units across all of its formats so far this year, Bed Bath & Beyond ended the third quarter with a total of 1,127 stores, including 976 of its flagship stores. In addition, the company operates 66 Christmas Tree Shops, 40 buybuy Baby stores and 45 stores under the names of Harmon or Harmon Face Values.
By the time the company’s fiscal year ends on Feb. 26 it will have opened approximately 40 new stores and a similar amount of new stores are slated to open during 2011.