Union, NJ, April 6, 2006--Bed Bath & Beyond Inc. reported a 9 percent rise in quarterly earnings, beating expectations, as more promotions brought in strong holiday sales.
The company also gave a full-year forecast that exceeded analysts' estimates and its stock rose more than 5 percent in after-hours trading.
Net income for the fourth quarter ended February 25 rose to $197.9 million, or $0.67 per share, from $181 million, or $0.59 per share, a year ago.
Wall Street analysts, on average, had expected the company to report earnings of $0.65 per share. Bed Bath & Beyond in December forecast fourth-quarter earnings of $0.64 a share.
Sales for the quarter rose 14.8 percent to $1.69 billion.
Sales at stores open at least a year, a key retail measure known as same-store sales, rose 6.3 percent.
In December, Bed Bath & Beyond said it was experiencing stiff price competition in the holiday shopping season and was trying to remain "relatively restrained" with its promotions.
For the full year ending in February, Bed Bath & Beyond expects earnings to rise 13 percent to about $2.17 per share. Analysts were expecting earnings of $2.14 per share.
The company forecast earnings of 35 cents per share for the first-quarter and a profit of 51 cents a share for the second quarter, in line with analysts' estimates.
The retailer currently has 746 Bed Bath & Beyond stores in the United States and Puerto Rico. It also operates the Christmas Tree Shops and Harmon Stores brands.
