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Investing.com — Bed Bath & Beyond’s unexpectedly good quarter is driving the stock up 32% on Thursday, and taking peers along with it.
Macy’s (NYSE:M) rose 3.3%, Kohl’s (NYSE:KSS) jumped 3% and Nordstrom (NYSE:JWN) traded up 3.2%.
Bed Bath & Beyond Inc (NASDAQ:BBBY) reported earnings per share of 50 cents, compared to the expected 32-cent loss. Net revenue of $2.69 billion beat the estimated $2.62 billion.
Online revenue saw a big boost as Americans hunkered down at home to prevent the spread of the coronavirus. Net sales from digital channels grew approximately 88%, while net sales from stores declined approximately 18%, compared to the prior year. The company also reported strong gross margins, and lower administrative costs.
“We’ve taken direct action to stabilize our business, including reducing our cost structure, enhancing our financial flexibility, and investing where it matters most to our customers,” Chief Executive Officer Mike Tritton said in a statement. “During this unprecedented time when our homes have become the center of our lives, our Company continues to respond with agility to the changing needs of our customers. We are delighted by the continued strong response to our BOPIS and contactless Curbside Pickup service offerings, and we believe the recent launch of our new Same Day Delivery service will make it even easier to shop with us.”
