BBBY announced that its Q2 2009 profits increased by 14% with earnings of 52 cents per share. Revenue rose 3.3% despite a 0.6% decrease in comparable store sales. Even though the company beat expectations, it still finished lower due to general economic news from the fed.
BBBY reported that is net income for Q1 2009 was $87 million, up 14% from Q1 2008 net income of $77 million. In addition, net sales rose by 2.8% YOY. The company attributes this gain as a result of increased market share after the liquidation of former competitor Linens n' Things.
For Q4 2008 (ended Feb. 28, 2009), BBBY reported net income of $141 million, or $0.55 per diluted share. This is a 18% decline from the previous-year quarter, during which EPS was $0.66. However, earnings for Q4 2008 beat analyst expectations that estimated EPS to be around $0.44. Although hurt by lower consumer demand for its household discretionary goods and the weak retail and home markets, BBBY benefited from gaining market share from its niche-market rival Linens 'N Things, which declared bankruptcy in 2008.
In Q3 of FY2008 (ended 11/29/2008), BBBY's net income was $87.7 million, down 36.5% from that of the prior-year quarter. Comparable store sales were down 5.6%; much of the sales decrease may be attributed to the weak retail environment that has reduced consumer spending on non-essentials as well as the price pressure from liquidation of merchandise from the bankrupt competitor Linens 'N Things.
Sales for the home furnishing industry fell 13.5% in October 2008 due to the low customer demand caused by the bearish home market and grim retail envrionment. Home furnishings same-store sales are also expected to be negative for Q3 and Q4 of 2008. BBBY faces more challenges in this recession as customers forego consumption on non-necessities.
BBBY reported a 10.8% increase in net sales for the third fiscal quarter of 2007, but only a 0.8% increase in same store sales. Growing sales barely offset increased costs as net profit only grew from $388.4 million in the same quarter last year to $389.9 million this quarter.
BBBY announces that it will acquire buybuy BABY for $86 million in cash, as well as inherit its $19 million in debt.
BBBY announces that its First Quarter profits were below what they had expected due to a slow down in home sales. This caused stock prices to fall from $40.47 USD to $38.27 USD.
