First-quarter results for Bed Bath & Beyond showed an impressive 53% increase in profits that was larger than Wall Street's estimates. This was even more impressive considering the challenging consumer spending environment.
The retail chain's profit was $137.6 million, or 52 cents per share, for the three months ended May 29, up from 34 cents a year ago. Net sales increased to $1.9 billion up from $1.7 billion the period.
Despite the solid report, shares of Bed Bath & Beyond ( BBBY - news - people ) fell 4.8%, or $1.98, to $39.48, in New York Thursday.
One analyst said the company's cost saving efforts, prudent inventory management, debt-free balance sheet and potential to gain market share should pave the way to meet or exceed earnings forecasts for the next year.to meet or exceed earnings forecasts for the next year.
The company expects EPS between 59 cents and 63 cents for the second quarter, and they predict a total increase of approximately 15% for fiscal 2010, but the guidance, which was boosted to the higher end of the range previously issued by management, did little for the retailer's shares Thursday.
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