Bed Bath & Beyond reported its first same-store sales gain in years fueled by surging e-commerce sales.
The home furnishings retailer’s net income increased to $217.9 million, or $1.75 per share, from a loss of $138.8 million, or $1.12 per share, a year ago. Excluding one-time items, the company earned $0.50 cents per share, beating analysts’ expectations for a loss of $0.23.
Net sales fell approximately 1% to $2.69 billion, better than expected. Bed Bath & Beyond attributed the decrease partially due to the divestiture of One Kings Lane. Digital sales soared 88% while net sales from stores declined approximately 18% compared to the year-ago period.
Same-store sales increased approximately 6%, the company's first comp growth since its fiscal 2016 fourth quarter. Sales benefited from significantly strong comp growth in digital channels of approximately 89%, partially offset by an approximately 12% decline in comparable store sales.
Under the leadership of former Target executive Mark Tritton, who took the reins as CEO in late 2019, Bed Bath & Beyond has been focused on turning around its ailing operation.The company has shored up its management team and is cutting some 2,800 jobs as part of a reorganziation. It also plans to close some 200 stores during the next two years, with 63 locations due to close in the third quarter.
In addition, Bed Bath & Beyond has focused on updating and expanding its digital capabilities. Most recently, it announced the roll out of same-day delivery via a partnership with Shipt and Instacart.
"Our growth strategy is unlocking improved financial performance, and the marked improvement in our second quarter financial results reflects the potential of our digital-first, omni-always transformation and our efforts to build a modern, durable platform for success,” said CEO Mark Tritton. “We've taken direct action to stabilize our business, including reducing our cost structure, enhancing our financial flexibility, and investing where it matters most to our customers.”
As of August 29, 2020, the company had a total of 1,476 stores, including 955 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada; 259 stores under the names of World Market, Cost Plus World Market or Cost Plus; 128 buybuy BABY stores; 81 stores under the names Christmas Tree Shops, Christmas Tree Shops andThat! or andThat!; and 53 stores under the names Harmon, Harmon Face Values or Face Values.