Bed Bath & Beyond says digital sales came in 89% higher in the second quarter
- Bed Bath & Beyond says digital sales came in 89% higher in the second quarter.
- The retailer topped analysts' estimates for earnings and revenue in the fiscal Q2.
- Bed Bath & Beyond did not give full-year guidance due to COVID-19 uncertainty.
Bed Bath & Beyond (NASDAQ: BBBY) said on Thursday that its digital comparable-sales came in 89% higher in the fiscal second quarter. Its financial report also highlighted the company to have seen an increase in same-store sales for the first time in almost four years. According to Mark Tritton:
“When home is everything, we’re really poised to be the epicentre of that. We were agile about getting after that.”
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Bed Bath & Beyond said that it expanded its customer base with 2 million customers in the recent quarter. Shares of the company rallied over 16% in premarket trading on Thursday. Including the price action, the stock is now trading around the same level at which it started the year 2020. Trading stocks online is easier than you think. Here’s how you can buy shares online in 2020.
Bed Bath & Beyond Q2 financial results versus analysts’ estimates
According to Refinitiv, experts had forecast the company to print £2.01 billion of revenue in the second quarter. They had predicted it to register 17.78 pence of loss per share. In its report on Thursday, Bed Bath & Beyond topped both estimates posting a higher £2.08 billion of revenue and 38.65 of adjusted earnings per share in Q2.
For the quarter that concluded on 29th August, the American chain of domestic merchandise retail stores reported £168.44 million of net income as compared to £107.29 million of loss in the comparable quarter of 2019. Its net sales also came in 1% lower on an annualised basis on Thursday.
Bed Bath & Beyond said that its comparable-store sales in the recent quarter were 6% higher on a year over year basis versus a 2.1% decline expected, as per FactSet. The financial report came only days after Bed Bath & Beyond launched nationwide same-day delivery.
Bed Bath & Beyond refrains from giving guidance for the full year
The Union-based company acknowledged the uncertainty associated with the Coronavirus pandemic and refrained from giving its guidance for the full year on Thursday. But it expressed confidence that same-store sales were encouraging in September.
Bed Bath & Beyond is likely to close 63 of its namesake stores in the fiscal third quarter. Two hundred in total are likely to be closed over the next two years. In the prior quarter (Q1), the retailer had revealed its sales to have tanked by 49% due to COVID-19 restrictions.
At the time of writing, the American chain of domestic merchandise retail stores has a market cap of £1.45 billion.