NEW YORK (TheStreet) -- Bed Bath & Beyond (BBBY) shares were surging 5.4% to $66.08 early Wednesday following better-than-expected second-quarter earnings, as the the housewares retailer offered more discounts and coupons brought shoppers in the door and online.
The Union, N.J.-based company reported net income of $224 million, or $1.17 a share, down from year-earlier earnings of $249.3 million. The per-share earnings, however, beat analysts' expectations of $1.14 a share. Bed Bath & Beyond's comparable-store sales for the quarter ended Aug. 30 rose 3.4% vs. growth of 3.7% in the second quarter of last year. Net sales rose 4.3% to 2.94 billion, surpassing expectations of $2.89 billion in quarterly sales.
Bed Bath & Beyond repurchased about $1 billion in common stock during the quarter, representing approximately 16.9 million shares.
The company forecast third-quarter earnings per share between $1.17 and $1.21. It also said it expects fourth-quarter earnings per share of between $1.78 and $1.83 and full-year earnings of between $5 and $5.08.
Here's what analysts had to say.
Brian Nagel, Oppenheimer (Perform; $69 PT)
We look on the Q2 (Aug.) results that Bed Bath & Beyond reported last night as better but not suggestive of a significant positive turning point for the chain. In our view, the pop higher in shares post-market might prove premature. Comp-store sales rose an above-plan 3.4%. Gross margins, however, remained soft. Excluding the benefit of the company's recent ASR, FY14 (Feb. 2015) guidance is now modestly lower. Management definitely sounds more constructive on its plans for an omni-channel business model. Our rating on BBBY remains Perform.