NEW YORK (
) -- A spate of retailers on Thursday raised their quarterly earnings guidance, sending their shares up to eye-popping levels.
Bed, Bath and Beyond
, the home-goods retailer, was one of these companies -- and shares in the company, in response, shot up by 8.9% to $42.70 in midday trading.
Yesterday Bed, Bath and Beyond reported net earnings of 58 cents per diluted share or $151.3 million in the fiscal third quarter ended November 28, 2009, which is an increase of about 71% from a year ago. This figure beat the 43-cent projection in a Thomson Reuters poll of analysts.
Meanwhile, its comparable store sales increased by about 7.3% in the third quarter, compared with a decrease of approximately 5.6% in the same period last year.
As of November 28, 2009, Bed, Bath and Beyond operated more than 1,000 stores in 49 states, the District of Columbia, Puerto Rico and Canada, reaching a consolidated store space of about 33.4 million square feet as of November 28, 2009.
Since the beginning of the fourth quarter, three additional Bed Bath & Beyond stores and one Bed Bath & Beyond store has been closed.
Bed, Bath and Beyond now predicts earnings of about 67 cents to 71 cents per diluted share for the fiscal fourth quarter, better than the 62 cent prediction provided in a Thomson Reuters poll of analysts.
The company has managed to reduce the impact of the economic downturn on consumer spending by resorting to cost-cutting measures and limiting its expansion efforts. It has also benefited from the liquidation of its rival Linens N Things, which has closed hundreds of stores after filing for bankruptcy in 2008.
-- Reported by Andrea Tse in New York
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