UPDATE 2-Bed Bath & Beyond second quarter net rises

* Q2 EPS 52 cents tops Street view of 48 cents

* Says Q3, 2009 Street estimates appear reasonable

* Shares fall 2.6 percent
(Adds details and comments from conference call, outlook,
stock activity)

LOS ANGELES, Sept 23 (Reuters) - Bed Bath & Beyond Inc
(BBBY.O) reported a second-quarter profit that rose more than
analysts expected as cost cuts helped offset weak demand for
home furnishings.

But shares fell 2.6 percent after the retailer refrained
from raising its profit outlook for the remainder of the year,
even though it beat expectations in the second quarter and saw
a surprise rise in first-quarter profit.

Net income for the fiscal second quarter ended Aug. 29 rose
to $135.5 million, or 52 cents per share, from $119.3 million,
or 46 cents per share, a year earlier, the company said on
Wednesday.

Analysts on average were expecting earnings of 48 cents per
share, according to Reuters Estimates.

Sales rose 3.3 percent to $1.92 billion as the company
opened more stores, but sales at stores open at least a year, a
key retail measure known as same-store sales, fell 0.6
percent.

Bed Bath & Beyond and peers like Pier 1 Imports Inc (PIR.N)
and Williams-Sonoma Inc (WSM.N) have seen sales fall as the
weak U.S. housing market erodes demand for the home furnishings
they sell. Former rival Linens 'n Things closed its doors after
filing for bankruptcy protection last year.

Bed Bath & Beyond has seen its margins improve since the
demise of Linens 'n Things eliminated the need for it to match
that struggling retailer's aggressive couponing.

Executives said on a conference call that Wall Street
estimates calling for a profit of 38 cents a share in the third
quarter and $1.79 a share for the full year appeared
reasonable.

The company also expects "relatively flat to slightly
positive" consolidated same-store sales in the third and fourth
quarters.

The retail chain also operates stores under the Christmas
Tree Shops, Harmon, Harmon Face Values and buybuy Baby names.

Shares of Bed Bath & Beyond fell to $38 in extended trade
from their Nasdaq close of $39.02.
(Reporting by Lisa Baertlein; editing by Carol Bishopric and
Matthew Lewis)