Bed Bath & Beyond (NASDAQ:BBBY) on Thursday reported its first same-store sales increase in nearly four years, as its online business surged more than 80% during the quarter, as shoppers stocked up on disposable face masks, college dorm decor and patio furniture.
The Union, New Jersey-headquartered company said it saw two million new customers during the period, many of them younger and spending more money per trip. The sales gains, plus lower spending on promotions and the use of its stores to fulfill more online orders, helped swing the company to a profit.
Said CEO Mark Tritton, "When home is everything, we’re really poised to be the epicenter of that. We were agile about getting after that."
For the quarter ended Aug. 29, the company said net income rose 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 50 cents per share, ahead of expectations for a loss of 23 cents.
Net sales fell about 1% to $2.69 billion from $2.72 billion a year ago, but were better than expectations of $2.60 billion.
Same-store sales rose 6% — its first quarter of same-store sales growth since the fourth quarter of fiscal 2016. Analysts had been calling for a decline of 2.1%. Online sales helped drive the gains, with digital comparable sales surging roughly 89%, Bed Bath & Beyond said.
Same-store sales at its stores were down 12% year-over-year.
Bed Bath & Beyond is not offering a full-year outlook at this time, but said same-store sales for September trended positive, with similar store and digital sales patterns compared with the second quarter.
BBBY shares sprinted $4.07, or 27.2%, to $19.05 early Thursday.
