Bed Bath & Beyond posted softer-than-expected first quarter earnings on June 30, but boosted its full-year profit guidance as same-store sales expanded for the fourth consecutive quarter under the turnaround plans of CEO Mark Tritton. Bed Bath & Beyond fiscal first-quarter sales climbed nearly 50%, as the retailer’s turnaround initiatives including launching new brands and remodelling stores helped to draw in customers for everything from blenders to bath mats. However, its first-quarter earnings were hurt and will continue to be weighed down by the costs that Bed Bath & Beyond faces in order to successfully turn its business around.

Highlights from the Q1 financials were as follows:

  • Core Sales growth of +73%; Comparable Sales growth of +86% versus Q1 2020
  • Comparable Sales growth for Total Enterprise +3% compared to Q1 2019
  • Gross Margin of 32.4% and Adjusted Gross Margin of 34.9%, primarily driven by Owned Brand launches and channel mix shift due to normalized digital penetration versus the COVID-19 period last year
  • Q1 Adjusted EBITDA of $86 million inclusive of incremental marketing investments during the quarter
  • Established guidance outlook for 2021 second quarter
  • Raised full fiscal year 2021 guidance outlook on Sales and Adjusted EBITDA; Re-establishes Adjusted EPS guidance

Bed Bath & Beyond said adjusted earnings for the three months ending in May, the group’s fiscal second quarter, came in at $5 cents per share, up from a loss of $1.96 (U.S.) over the same period last year but just shy of the Street consensus forecast of 8 cents per share. Group revenues, Bed Bath & Beyond said, rose 48.8% to $1.95 billion, topping analysts’ estimates of a $1.87 billion tally.

Looking into the 2022 fiscal year, which ends in February, Bed Bath & Beyond said it sees net sales in the region of $8 billion to $8.2 billion and adjusted earnings of between $1.40 to $1.55 per share, or $520 million to $540 million.

“We have started the year in a position of strength and are clearly on track to accomplish our goals. 2021 marks the first year of our three-year transformation following the groundwork we laid in 2020 – a year of historic and necessary change for this organization against the backdrop of unprecedented challenges due to COVID-19,” Tritton said. “For the first quarter, we delivered our fourth consecutive quarter of comparable sales growth with gross margin expansion exceeding our expectations. These results demonstrate continued momentum with our strategies as we progress toward the goals we outlined at year-end and at our Investor Day.”

“We have made meaningful progress against our transformational pillars during this early stage of our multi-year plan,” he added. “We are a stronger, more agile company than ever before and well on our way to building long-term growth and unlocking greater shareholder value.”

Source: The Star
Source: CNBC
Source: Bed Bath and Beyond