EconomyEditor's PickNewsOnline Shopping Keeps Old School Retailers Like BBBY Afloat

2 years ago395 min
imageStock Markets35 minutes ago (Oct 01, 2020 11:06AM ET)

By Christiana Sciaudone — 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.”

Online Shopping Keeps Old School Retailers Like BBBY Afloat

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *