Bob’s Discount Furniture Q2 sales rise; expanding into two new states
Bob’s Discount Furniture reported solid second-quarter results in line with expectations as it continues to expand its footprint, particularly in the Southeastern U.S., and broaden its appeal across a wide range of incomes.
The retailer, which went public earlier this year, reaffirmed its full-year outlook along with plans to open approximately 20 new stores this year, representing 10% year-over-year growth. Bob’s opened four stores during the quarter, bringing year-to-date openings to nine.
The openings included the chain’s first two stores in South Carolina, marking its entry into its 27th state. Bob’s also opened two stores in the Charlotte area, increasing its North Carolina footprint to eight locations. Another store is planned for the back half of the year.
“Looking ahead, our development pipeline remains on track with a number of openings planned around Labor Day, including our entry into Tennessee with four new stores,” president and CEO Bill Barton said on the company’s earnings call.
Bob’s, which had a total of 218 locations at the end of the second quarter, continues to see a clear path to more than 500 stores by 2035, Barton told analysts.
The CEO acknowledged that traffic continued to be a headwind in the second quarter, although Bob’s traffic trends outpaced the industry.
“We're very pleased to be taking market share in that regard,” he said on the call. “We are seeing maybe a little bit of flattening out of that traffic decline that we've seen in over the prior quarters. It's certainly too early to call a bottom. For sure, we're seeing some green shoots in a few markets where we're beginning to see a little bit of an upturn in traffic.”
Second Quarter
Bob's second-quarter net income totaled $57.8 million, with earnings per share of $0.43, in the quarter ended June 30, compared to $35.2 million, with earnings per share of $0.31, in the year-ago period. Adjusted net income per share was $0.20 compared to $0.29 in the second quarter of fiscal year 2025.
Net revenue increased 8.8% to $619.6 million. E-commerce sales grew nearly 25% year over year. The increase comes as the company said it is leveraging AI in new ways across the customer journey, including AI-enabled scheduling for staffing efficiency and AI-powered product recommendations that improve conversion.
Comparable sales grew 2.3%. The growth was driven by higher average order value and conversion, partially offset by lower in-store traffic.
“Our strong second quarter results demonstrate the resilience of Bob’s business model and the effectiveness of our strategy in a demanding retail environment,” Barton stated in the earnings release. “As consumers remain focused on value, our Everyday Low Price approach continues to resonate, driving market share gains and reinforcing our competitive position. By remaining disciplined in our investments and focused on delivering exceptional value and a differentiated experience to our customers, we are well positioned to capitalize on the significant growth opportunities ahead."
Bob’s received approval for $45.1 million in International Emergency Economic Powers Act (IEEPA) tariff refunds in the second quarter. Of the total, the company recognized $37.9 million of tariff refunds in cost of sales related to inventory previously sold, $5.7 million as a reduction to inventory on hand, and $1.5 million in interest income. At June 28, it had $41.9 million in IEEPA tariff refund receivables, which was received subsequent to fiscal quarter end.
Bob's reaffirmed its top- and bottom-line guidance for full fiscal year 2026. It expects net revenues in the range of $2.6 billion to $2.625 billion and net income of $152 million to $160 million.
