The revenues of home furnishings retailer Bed Bath & Beyond beats forecasts as shares rose about 7%. Thanks to the help of discounts and promotions that attracted lots of buyers to its stores.
Bed Bath & Beyond have thought about the right offer at the right time. It’s the discounts and promotions offered when there’s sluggish economic growth and the home furnishing prices were higher when the company which beat its competitors. The U.S. buyers hunted for the lowest deals and found that Bed Bath 7 Beyond was the right choice. This required spending a lot of money for the company to promote its online presence and it also made a huge investment on coupons just to encourage more sales during the time when competition was tight with online retailers that all offer cheaper prices. It’s a good thing that all its efforts paid off with increased net sales.
The net sales of Bed Bad & Beyond ended the second quarter in August 30 with net sales that went up to $2.94 billion from last year’s $2.82 billion. Meanwhile, the net earnings of the company went down to $224 million from $249.3 million.
On average, experts and analysts were expecting the company’s earnings for the second quarter at $1.14 per share.
Bed Bath & Beyond have shown a pattern of positive earnings per share for the past two years already and experts are saying that the company will likely be able to continue the trend.
S&P Capital IQ equity analyst Efraim Levy wrote saying that the ongoing share repurchases should help EPS especially the second half of the fiscal year.