Bed, Bath edges 4Q

April 4, 2001
Web posted at: 2134 GMT

NEW YORK (CNNfn) -- Home products retailer Bed, Bath & Beyond Inc. reported a 33 percent jump in fourth-quarter earnings after the closing bell Wednesday, edging Wall Street estimates by a penny on rising sales.

For the quarter ended March 3, the Union, N.J.-based company, which was the only retailer to make the latest BusinessWeek 50 list of the top companies in the S&P 500, reported net earnings of $64.3 million, or 22 cents a share, compared with net earnings of $48.4 million, or 17 cents a share a year earlier. Analysts on average expected the company to earn 21 cents a share, according to earnings tracker First Call.

Fourth-quarter sales increased 31.1 percent to $746.1 million from $596 million a year ago. Sales at stores open at least a year, a closely watched figure known as same-store sales, increased 5 percent compared with a 9.6 percent increase posted a year ago.

Although Bed, Bath & Beyond, a favorite of many analysts, has managed to beat fourth-quarter expectations, same-store sales growth has slowed sharply from the previous quarter as the company struggles along with most retailers in dealing with a slowing economy and slower consumer spending.

Retailers have been walking a fine line in recent quarters as the slowing economy, high home heating and gas prices, and bad winter weather dampened consumer spending and chipped away at consumer confidence.

During the holiday season, many retailers drove tremendous sales by offering big promotions and slashing prices, so much so that the profit off those sales was slim.

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The Fed has aggressively raised interest rates three times so far this year, with more cuts expected next month, in hopes of keeping the U.S. economy out of a recession.

Fed Chairman Alan Greenspan keeps a close eye on consumer spending, since it fuels two-thirds of the economy.

Although consumer spending and confidence levels are off, they have held up better than many expected. Recent economic reports have indicated consumers are continuing to spend, albeit more deliberately than before, and the housing market remains strong.

Bed, Bath & Beyond (BBBY: Research, Estimates) shares ended up 56 cents at $24.62 Wednesday.

Bed, Bath meets forecasts – Dec. 13, 2000

Bed, Bath & Beyond

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