Bed Bath & Beyond Tops Estimates, Guides Higher

Author:: Diane Hess
Publish date:: Apr 3, 2002 5:34 PM EST

Home furnishings retailer

Bed Bath & Beyond

reported a sharp increase in quarterly earnings after the closing bell, sending the company's shares higher in extended trading.

Bed Bath & Beyond said it earned $82.7 million, or 28 cents a share, in the latest fourth quarter, up from $64.3 million, or 22 cents a share, in the same quarter a year ago. The results topped analysts' estimates of 26 cents a share.

The company also forecast first-quarter earnings of 13 cents a share, which would be a penny ahead of expectations, and full-year earnings of 91 cents a share, 2 cents above the consensus target.

Sales of home furnishings, like sales of houses, have been solid throughout the recession. Following the terrorist attacks on Sept. 11, many Americans used their spending money toward improving their homes. Since September, Bed Bath & Beyond is up 58%.

Sales for the fourth quarter came in at $879.1 million, an increase of 17.8% from the year-ago period. Analysts were expecting revenue of $842.7 million. Sales at stores open at least one year were up 11.9%.

Bed Bath & Beyond has opened five new stores since the beginning of the fiscal year on March 3, bringing the total number of locations to 401. The company expects to open about 83 more stores, in both new and existing markets, this fiscal year.

Shares of Bed Bath & Beyond ended regular trading at $31.59 before rising to $33.07 on the Instinet platform after the close.