Union, NJ, December 22, 2005--Bed Bath & Beyond reported third quarter earnings that rose 10.4 percent to $134.6 million, or $0.45 per share, compared with $121.9 million, or $0.40, a year earlier.
Analysts were expecting earnings of $0.45 per share in the quarter.
The company reported sales that increased 11 percent to $1.45 billion from $1.31 billion, but were lower than Wall Street expectations of $1.47 billion. Sales at stores open at least a year, a key retail gauge, rose 3.1 percent during the quarter.
The company said that during the third quarter and continuing into this holiday shopping season it has been experiencing an "extreme promotional retail environment," but it is trying to remain "relatively restrained" with its promotional activity.
For its fiscal fourth quarter, it said it is comfortable with its earlier outlook of earnings per share of $0.64, and earnings per share of $1.89 for fiscal year 2005 ending February 25, 2006.
Analysts, on average, are expecting fourth-quarter earnings per share of $0.66, and fiscal 2005 earnings per share of $1.91.
For its fiscal year 2006, which ends on March 3, 2007, consolidated net sales are expected to grow by approximately 11 to 12 percent. The retailer also said that net earnings for fiscal 2006 are expected to grow in a range of 10 to 11 percent.
Analysts, on average, currently expect it to report fiscal year 2006 sales of $6.56 billion and earnings per share of $2.19.
