Consolidated sales for the five destination categories at Bed Bath & Beyond stores rose 100% from 2020 and 7% from 2019, accounting for 65% of total first quarter sales.
“We have started the new fiscal year from a position of strength,” president and CEO Mark Tritton told analysts during this morning’s quarterly call.
Broken out by category, sales under the Bed Bath & Beyond banner included:
Bedding: Up 128% from 2020, up 6% from 2019
Bath: Up 147% from 2020, down 1% from 2019
Indoor décor: Up 112% from 2020, up 1% from 2019
Kitchen food prep: Up 59% from 2020, up 15% from 2019.
Home organization: Up 127% from 2020, up 5% from 2019.
Tritton attributed the slack in bath vs. 2019 to the recent reworking of the department as the company eliminated long-standing brands to introduce the new Haven and Nestwell private label brands.
“We think that is not representative of other quarters,” he added, describing the results as “more of a transformation.”
BBB is also expecting a stronger rebound in home décor with new brands launching during the second quarter.
Overall results were more of a mixed bag. Sales in non-destinations categories were flat compared to 2019 but up 88% compared to 2020, when many Bed Bath stores were temporarily dark in compliance with pandemic regulations.
Gustavo Arnal, EVP/CFO, noted that the company reduced inventory at its existing businesses by more than $100 million compared to the first quarter of 2020. “So we’re doing more sales on less inventory,” he said.
For the quarter ended May 29, total company net sales – which include the Bed Bath & Beyond, buybuy Baby, Harmon Face Values and Decorist businesses – rose 73% to $1.95 billion, driven primarily by growth at Bed Bath.
Comps increased 86%, a figure that does not include the operations the company has divested. Compared to the 2019 fiscal first quarter, total enterprise comparable sales increased 3%, driven by digital sales growth of 84%.
For the quarter ended May 29, total company net sales – which include the Bed Bath & Beyond, buybuy Baby, Harmon Face Values and Decorist businesses – rose 73% to $1.95 billion, driven primarily by growth at Bed Bath.
Comps increased 86%, a figure that does not include the operations the company has divested. Compared to 2019 fiscal first quarter, total enterprise comparable sales increased 3%, driven by digital sales growth of 84%.
Net loss narrowed to $50.9 million, or $0.48 per diluted share, from a net loss of $302.3 million, or $2.44 per diluted share in the year-ago quarter.
The company was sufficiently encouraged by year-to-date results to raise its guidance today. Bed Bath & Beyond raised its target for full fiscal year sales to $8.2 billion to $8.4 billion, up from $8.0 billion to $8.2 billion.
The company is raising comparable sales expectations for the second through fourth quarters to the low-single-digit growth range versus its previous outlook for flat comparable sales growth.
