Bed, Bath & Beyond Inc. (BBBY) – Get Report shares surged higher Thursday after the home retailer posted surprise second quarter earnings that topped Wall Street forecasts as online sales continue to surge.
Bed Bath & Beyond said adjusted earnings for the three months ending on August 29, its fiscal second quarter, were pegged at 50 cents per share, well ahead of the Street consensus forecast of 23 cents per share. Group revenues, the company said, were essentially flat to last year at $2.7 billion, but topped analysts’ forecast of a $2.6 billion tally thanks in part to an 89% annual increase in online sales.
Comparable store sales were solid, as well, rising 6% from last year and notching the first positive growth rate since the fourth quarter of the retailer’s 2016 fiscal year.
“Our growth strategy is unlocking improved financial performance, and the marked improvement in our second quarter financial results reflects the potential of our digital-first, omni-always transformation and our efforts to build a modern, durable platform for success,” said CEO Mark Tritton. “We’ve taken direct action to stabilize our business, including reducing our cost structure, enhancing our financial flexibility, and investing where it matters most to our customers.”
“At the same time, we have assembled a world-class and experienced leadership team to rebuild our authority in Home and modernize our operations to deliver a truly customer-inspired and omni-always shopping experience,” he added.
Bed, Bath & Beyond shares were marked 23.3% higher in early trading following the surprise earnings release to change hands at $18.47 each, the highest in more than a year and a move that would extend the stock’s six-month gain to nearly 390%.
Last week, Bed, Bath & Beyond named Scott Lindblom as chief technology officer to support what the company called its “digital-first, omni-always customer experience” amid a broader cost-cutting plan that ultimately places more emphasis on online sales during the extended coronavirus pandemic.