Bed Bath & Beyond Surprises Analysts

Against all odds, home furnishings retailer Bed Bath & Beyond has posted a 6 percent quarterly rise in profits, one that analysts did not expect at all. Analysts are chalking the company’s surprise profit up to Bed Bath & Beyond’s vigorous cost-cutting measures.

In the span of a year, Bed Bath & Beyond’s net earnings have risen from $76.78 million, or 30 cents per share, to $87.17 million, or 34 cents per share. However, analysts predicted net earnings at around 25 cents per share, which means that Bed Bath & Beyond dramatically outperformed expectations.

In all stores, sales have risen 2.8 percent to $1.69 billion, but on a store-to-store basis at locations that have been open for more than a year, sales have actually fallen 1.6 percent. Bed Bath & Beyond, as well as other major home furnishing retailers, blame shrinking sales numbers on the recession, stating that demand for their goods has fallen as consumers have less and less disposable income.

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