UNION (dpa-AFX) - Bed Bath & Beyond Inc. (BBBY) Wednesday reported a better-than-expected increase in second-quarter profit, as the home goods retailer benefited from a near 9 percent increase in sales.
The company provided some strong earnings outlook for the third quarter, while lifting tightening its earnings guidance for 2013.
The results cheered investors, sending Bed Bath & Beyond shares up by about 5 percent in after-hours trading on the Nasdaq.
Bed Bath & Beyond, based in Union, New Jersey, operates 1,484 stores that sell a range of domestic merchandise and home furnishings. It operates under its namesake brand as well as World Market, Christmas Tree Shops, andThat!, Harmon, among others.
For the second quarter, Bed Bath & Beyond posted quarterly net income of $249 million or $1.16 per share, compared with $224 million or $0.98 per share last year.
On average, 24 analysts polled by Thomson Reuters expected the company to earn $1.15 per share for the quarter. Analysts' estimates typically exclude special items.
The increase in profit stands in stark contrast to declines it had suffered earlier owing to pressure on margins.
Net sales for the second quarter climbed to $2.82 billion from $2.6 billion in the prior year. Analysts expected revenues of $2.81 billion for the quarter.
On a same-store basis, sales for the quarter were up 3.7 percent.
During the quarter, Bed Bath & Beyond repurchased about 3.5 million of its common shares for about $257 million. As of August, the company had $1.8 billion remaining under its December 2012 buyback program.
Looking forward, Bed Bath & Beyond expects third-quarter earnings of $1.11 to $1.16 per share, while analysts expect $1.12 per share.
For 2013, the company now expects earnings of $4.88 to $5.01 per share, while earlier, it set the bottom range at $4.84 per share. Analysts expect earnings of $5.01 per share.
Bed Bath & Beyond also provided guidance for the fourth quarter, with e earnings in the range of $1.70 to $1.77 per share.
Shares of the company closed Wednesday at $74.22, down $0.59 or 0.79%, on a volume of 2 million shares. In after hours, the stock gained $3.63 or 4.89% at $77.85. In the past 52-week period, the stock trended in a range of $54.33 to $78.25.
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