Bed Bath & Beyond Inc. (BBBY) is rolling out fourth-quarter earnings. It surpassed analysts’ earnings estimates again.
In the fourth quarter of 2006, Bed Bath & Beyond’s sales declined 16.7% over the same period in 2007 and came in at $ 2.62 billion, shy of Wall Street’s estimate of $ 2.63 billion. Cost Plus World Market and Christmas Tree Shops were both abandoned by Bed Bath & Beyond earlier this year, as they suffered revenue declines as a result. Although revenue decreased, net income was significantly higher than expected: $ 9.1 million, or $ 0.08 per share. Compared to a year previously, Bed Bath & Beyond earned $0.04 per share in its fourth quarter, an increase of $ 0.02 per share from the previous year. Wall Street had been expecting $0.02 per share for Bed Bath & Beyond.
Bed Bath & Beyond launched the first of eight new in-house brands last month, Newell and Haven. The latest products may become a driving force of growth in the years ahead, partially offsetting older brands’ abandonment. Furthermore, Bed Bath & Beyond minimizes the number of marginal stores and optimize the structure. Profitability can be improved if this occurs. Bed Bath & Beyond will close some 200 stores by the end of fiscal 2021.
It also confirmed that its full-year sales forecast would be between $ 8 billion and $ 8.2 billion in 2021, down approximately 10% on a year-to-year basis. A decline in EBITDA is again associated with structure optimization. The BBBY stock’s forecast is for adjusted EBITDA of between $ 500 million and $ 525 million. In addition to this, the retailer intends to buy back shares at a rate of 800 million dollars over one year. To raise funds for the buyback, the BBBY stock sells non-core assets.
Bed Bath & Beyond Inc. (NASDAQ: BBBY) rose by 0.08% on Thursday’s trade, a decrease of $0.02 from its previous market close price. A share price of $23.34 represented the day’s lowest point, while a peak of $24.62 represented a share price. According to Barchart data, BBBY ended the previous session at $24.52, and its trading volume was 6.64 million shares.