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Bed, Bath & Beyond Stock Rockets On Kroger Marketing Deal, Accelerated Buybacks

Bed, Bath & Beyond shares soared in extended-hours trading Tuesday after unveiling a marketing partnership with Kroger and accelerating its $1 billion share buyback plans.

Bed, Bath & Beyond  (BBBY) - Get Bed Bath & Beyond Inc. Report shares nearly doubled in after-hours trading Tuesday after the home retailer unveiled a distribution partnership with Kroger Co  (KR) - Get Kroger Co. Report and said it would complete its $1 billion share repurchase program by the end of its fiscal year. 

Bed, Bath & Beyond said the deal will see its signature and 'BuyBuy Baby' products sold on, as well as in the grocery chain's physical stores, starting in 2022. 

The retailer will also step-up its 2021 share repurchases from $325 million to $625 million, with an aim to complete its $1 billion program by the end of February - three years ahead of its original schedule. 

  Our collaboration with an exceptional retailer like Kroger underscores Bed Bath & Beyond's authority in the home and baby categories," said CEO Mark Tritton. "Today's announcement is a key milestone, bringing Bed Bath & Beyond and buybuy Baby products to reach more customers than ever before."

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"Our product assortment combined with Kroger's customer base will present extensive opportunities for current and future customers," he added.  

Bed, Bath & Beyond shares were marked 87.5% higher in extended-hours trading to indicate a Wednesday opening bell price of $30.39 each. 

Kroger shares gained 1.35% to indicate a Wednesday opening bell price of $41.25 each. 

Bed Bath & Beyond posted weaker-than-expected second quarter earnings in late September, and slashed its full-year profit outlook, owing to steeper cost inflation and a significant slowdown in store traffic. 

Looking into the 2022 fiscal year, which ends in February, Bed Bath & Beyond said it sees net sales in the region of $8.1 billion to $8.3 billion and adjusted earnings of between 70 cents and $1.10 per share, down from its June forecast of between $1.40 to $1.55 per share.