Bed Bath & Beyond boosts Q1 revenue, has more deals in the works

Murray, Utah – Bed Bath & Beyond Inc. pared its net loss during the first quarter, while the top line generated its first significant increased in nearly five years.

For the quarter ended March 31, net revenue rose 6.9% to $248 million – the majority of those dollars generated by its retail businesses. Net revenue excluding the impact from the company’s exit from Canada increased 9.4% year-over-year on a non-GAAP basis.

“This marks the first time in 19 quarters that the business has returned to year over year growth,” said Marcus Lemonis, CEO and executive chairman.

He added, “Customer acquisition is more efficient, owned channels are performing better, and engagement quality is improving. Returning customer behavior is strengthening, and average order value is increasing.”

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Average order value was $205, up 6% compared to last year’s first quarter, although orders delivered were down 19% year over year, coming in at 5.2 million. Compared to the fourth quarter, the company delivered 13,000 more orders, up 0.3%.

On the bottom line, Bed Bath & Beyond knocked 50 basis points off its sales and marketing expense, which came in at $32 million. Technology and general and administrative expense declined to $36 million compared to $41 million in the prior year. Net loss narrowed to $16 compared to a net loss of just under $40 million in the year-ago period. Adjusted EBITDA (non-GAAP) was a loss of $8 million, a $5 million improvement year-over-year.

The company does not break out sales performance for its retail segments, which during the quarter included Bed Bath & Beyond, Overstock and buy buy Baby. Following the close of the quarter, the company completed its acquisition of The Brand House Collective (formerly Kirkland’s Home) and announced the acquisitions of The Container Stores, Closet Works and Elfa, a home organization system business based in Sweden.

In addition, Bed Bath & Beyond Inc. earlier this month signed a letter of intent to acquire the assets F9 Brands Inc. – which comprise a broad portfolio of businesses in the building products, home improvement and luxury home décor industries, including Cabinets To Go, Lumber Liquidators, Gracious Home / Thos. Baker, and Southwind Building Products.

The company is now in active discussions for acquisitions that expand on its Everything Home business model , including brokerage, mortgage, installation and renovation services.

“Our product categories and home services initiatives are the engines that drive demand. When you connect that with our digital and financial capabilities, you start to build an ecosystem that keeps the customer engaged longer and increases lifetime value,” said Lemonis.