The share price of American domestic merchandise retailer Bed Bath & Beyond rose more than 18 percent in premarket trading after the company reported growth in its same-store sales for the first time in nearly four years. For its latest quarter, the company said its online business grew by more than 80% as consumers flocked to buy its decor, household and furniture products.
Bed Bath & Beyond said it had roughly 2 million new customers during the three-month period, most of which were younger consumers. Apart from the rise in its online sales, the company said its reduced spending and the use of its stores to fulfill online orders helped its bottom line.
"When home is everything, we're really poised to be the epicenter of that. We were agile about getting after that," Bed Bath & Beyond chief executive officer Mark Tritton said.
Earnings for the period ended August rose to $217.9 million or $1.75 per share. It reported a $138.8 million loss reported over the same period last year. Revenues for the latest quarter were $2.69 billion compared with $2.60 billion expected by analysts.
Same-store sales for the period grew 6%, the first reported growth since the company's fourth quarter of 2016. Analysts' predicted a 2.1% decline.
The company declined to provide a full-year outlook but analysts say its sales trend is up. Bed Bath & Beyond attributed its better-than-expected results to the outcome of its digitalization efforts over the past quarters. During the height of the pandemic, the company rolled out digital services such as its buy online, in-store collection and contactless curbside collection options.
Earlier this week it announced that plans for same-day delivery services throughout the U.S. The company is aiming to capitalize on the expected demand increase during the busy holiday season. Bed Bath & Beyond has partnered with delivery companies Instacart and Shipt.