BBB ends Q2 on high note
HTT Staff -- Home Textiles Today, 9/20/2012 11:25:31 AM
Union, N.J. - Although Bed Bath & Beyond's earnings missed Wall Street estimates, the company touted many second quarter accomplishments, including the completion of its acquisitions of regional retailer Cost Plus/World Market and business-to-business textiles company Linen Holdings.
Earnings came in "at the high end of our model," noted co-chairman Warren Eisenberg. Net earnings rose 5.4% to $224.3 million, or 98 cents per share. Analysts had been expecting EPS in the range of $1.02.
Net sales for the quarter, which ended Aug. 25, climbed 12.1% to $2.593 billion, and comparable store sales were up about 3.5% on top of an increase of 5.6% in last year's fiscal second quarter. Comp performance was attributed to an increase in both number of transactions and transaction amounts.
Year to date, the company's net earnings were up 13.3% to $431.2 million, or $1.87 per share. Net sales increased 8.8% to $4.811 billion, and comparable store sales rose 3.3%.
Included in part of the quarterly and year-to-date results were the accounts of Linen Holdings since the date of its acquisition on June 1, and Cost Plus Inc. (also known as World Market) since the date of its acquisition on June 29.
BBB noted that Linen Holdings, a business-to-business distributor, is excluded from the comparable store sales. Additionally, World Market was excluded from the comp calculations for the second quarter and first half of 2012. BBB will start adding World Market comps into its same-store sales report the anniversary of the acquisition next summer.
During the BBB's conference call Wednesday evening, co-chairman Warren Eisenberg said the company "looking forward to the opportunities provided by these acquisitions to do more for and with our collective customers."
The retailer also completed the relocation of its offices in Farmingdale and Garden City, New York, to the company's headquarters here during the quarter.
"We expect to further improve our communication, coordination, and execution across all of our concepts, activities, and platforms to enhance the continuing growth our company," said Steven Temares, ceo.
BBB ended the quarter with 1,449 stores, including: 1,000 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada; 258 stores under the names of World Market, Cost Plus World Market, and World Market Stores; 73 Christmas Tree Shops stores; 71 buybuy Baby stores; and 47 stores under the names of Harmon or Harmon Face Values. In addition, the company is a partner in a joint venture which operates two stores in the Mexico City market under the name Home & More.
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