Updated from 5:14 p.m. EDT
SAN FRANCISCO -- Second-quarter profit at
Bed Bath & Beyond
edged higher, beating Wall Street's expectations.
Shares of the home goods retailer climbed 58 cents, or 1.7%, to $34.41 in recent after-hours trading.
Bed Bath & Beyond earned $147 million, or 55 cents a share, including a $5.8 million tax benefit. This marked an increase from $145.5 million, or 51 cents a share, in the same period last year.
Sales grew to $1.77 billion vs. $1.61 billion a year ago.
Analysts had estimated earnings of 52 cents on revenue of $1.77 billion.
Same-store sales, or sales at stores open at least a year, grew 2.2% in the second quarter, slowing from a 4.8% increase last year in the same period.
The company also announced a new $1 billion share repurchase program to begin after it completes a $1 billion program authorized in December.
The latest share repurchase program, to be funded from current and future free cash flows, is the fourth one to be authorized by the board of directors since 2004. Upon its completion, Bed Bath & Beyond will have purchased almost $3 billion of its shares.
"Our Board took this action based upon its continued confidence in our Company's long-term growth potential, financial outlook and excess cash flow generation," said Steven Temares, the company's chief executive, in a statement. "That said, our Company's Board of Directors continues to review our capital structure on an ongoing basis. In addition to providing value to our shareholders through share repurchase programs, our strong operations should allow us to continue to invest in our infrastructure and maintain our flexibility to take advantage of opportunities as they may arise."
Bed Bath & Beyond continues to expand its store base, despite growing concerns that the housing slump will hurt retailers. The company plans to open 70 stores this year, including its first store in Canada.