Bed Bath & Beyond’s fiscal first-quarter sales increased by than 50%, thanks to the retailer’s turnaround efforts, which included launching new brands and refurbishing shops, which helped to attract customers looking for everything from blenders to bath mats. The company raised its full-year revenue forecast as a result of its progress ahead of the crucial back-to-school buying season. However, Bed Bath & Beyond’s first-quarter profitability were harmed and will continue to be harmed by the costs that the company must incur in order to properly turn around its business. In a statement, Chief Executive Mark Tritton said, “We are re-establishing our authority in home, recapturing market share, and unlocking our full potential.” The stock of Bed Bath & Beyond swung back and forth when the results were announced. Initial gains of more than 6% were followed by a drop. In recent premarket trade, shares were up less than 1%. Retail investors on the social media platform Reddit have dragged the stock into a so-called meme trading frenzy. However, Bank of America analyst Curtis Nagle said that shares had resumed trading at pre-surge levels ahead of Wednesday’s results. Based on a Refinitiv survey of analysts, here’s how the firm reported for the three months ending May 29 compared to what Wall Street expected: Earnings per share: adjusted 5 cents vs. anticipated 8 cents $1.95 billion in revenue vs. $1.87 billion projected Bed Bath & Beyond reported a net loss of $51 million, or 48 cents per share, compared to a loss of $302 million, or $2.44 per share, the previous year. The company earned 5 cents per share after one-time charges linked to asset sales and other turnaround activities, falling short of analysts’ expectations of 8 cents per share. Net sales increased by 49% to $1.95 billion from $1.3 billion a year ago, exceeding analysts’ forecasts of $1.87 billion. The company’s core sales, which include revenue from Bed Bath & Beyond, Buybuy Baby, Harmon Face Values, and Decorist, increased by 73 percent year over year. Bedding, bath, kitchen food prep, and indoor decor items grew faster than other categories at Bed Bath & Beyond. Comparable sales, which measure revenue generated online and in stores open for at least a year, were up 86 percent from 2020 levels, and up 3% on a two-year basis. According to StreetAccount estimates, analysts expected 75.6 percent year-over-year growth. Comparable sales were adjusted to account for the negative impact of ongoing shop closures. According to the company’s news release, stores that permanently shuttered in fiscal 2020 would have contributed around 13% of the retailer’s core sales in the fiscal first quarter. The firm had 1,004 locations as of May 29, including 818 of its eponymous Bed Bath & Beyond stores. So far, a critical component of Bed Bath & Beyond’s turnaround plans is on track. It’s about to launch a slew of new in-house brands in the kitchen, bedding, and organization areas. According to the corporation, private label sales will account for 30% of its business within a few years, up from roughly 10% by the end of 2020. Bed Bath & Beyond wants to increase profits by selling more in-house products. This is one way the corporation may be able to offset some of the high costs it faces as it invests in things like new stores. Bed Bath & Beyond debuted the bedding and bath label Nestwell, a spa-inspired brand Haven, and an everyday necessities collection called Simply Essential during its fiscal first quarter. There are a few more labels on the way. It has also increased its marketing efforts in an effort to establish itself as a one-stop shop for all things related to the house. “Home, Happier,” a national television and social media campaign, recently debuted. “We’ve started the year on a strong footing and are on course to meet our objectives,” Tritton added. Bed Bath & Beyond raised its full-year revenue forecast to $8.2 billion to $8.4 billion, up from $8 billion to $8.2 billion previously. On an adjusted basis, fiscal 2021 earnings are expected to range between $1.40 and $1.55 per share. Analysts expected adjusted earnings of $1.47 per share on revenue of $8.15 billion for the full year. Bed Bath & Beyond expects to earn between 48 cents and 55 cents per share after adjustments in the second quarter. The company expects to make between $2.04 billion and $2.08 billion in sales. According to Refinitiv data, analysts expected adjusted earnings of 52 cents per share on sales of $2.02 billion in the second quarter. Bed Bath & Beyond is the latest retailer to improve employee benefits. Parents will be given up to eight weeks of paid leave after the birth, adoption, or fostering of a new kid, according to the corporation. In a tight labor market, many retailers have increased wages and benefits to attract workers. The complete Bed Bath & Beyond earnings release can be found here. Continue reading
