* Q3 EPS 58 cents vs Street view 43 cents
* Sales up 10.8 percent
* Sees full-year EPS above analyst estimates
* Shares up 8 pct in after-hours trading
(Adds comments from conference call, analyst; background)
By Dhanya Skariachan
NEW YORK, Jan 6 Bed Bath & Beyond Inc (BBBY.O)
reported a higher-than-expected quarterly profit on Wednesday
in a sign that demand for home furnishings is improving, and
forecast full-year results that beat Wall Street expectations.
Shares rose about 8 percent in after-hours trading.
The results echo strong performance from other U.S.
furniture and home goods companies Williams-Sonoma (WSM.N) and
Pier 1 Imports Inc (PIR.N). [ID:nN17169989] [ID:nN19161113]
"We are seeing some pent-up demand for home goods being
unleashed due to improving economic conditions along with
improvement in the housing market," Barclays analyst Michael
Lasser said by phone.
Lasser has an "equal-weight" rating on the stock.
The chain retailer, whose stores include Bed Bath & Beyond,
Christmas Tree Shops and buybuy Baby, also benefited from the
exit of former rival Linens 'n Things, which liquidated in late
2008 after it failed to find a buyer.
The recession and the collapse of the U.S. housing market
hurt many home goods retailers as customers stayed home.
Bed Bath & Beyond has also kept a tight lid on costs by
managing staffing levels and negotiating lower rents.
It also has a wider appeal than some rivals, with its
namesake stores selling an array of products from furniture and
luggage to electronics and appliances.
Net earnings rose about 73 percent to $151.3 million, or 58
cents a share, in the fiscal third quarter ended Nov. 28, from
$87.7 million, or 34 cents a share, a year earlier.
Analysts on average were expecting a profit of 43 cents a
share, according to Thomson Reuters I/B/E/S.
Sales rose 10.8 percent to $1.98 billion. Sales at stores
open at least a year, a retail measure known as same-store
sales, rose 7.3 percent.
On a conference call, the company said it was "cautiously
optimistic" about the rest of the year. Bed Bath & Beyond
expects to earn $2.11 to $2.15 a share in the period, above
analyst expectations of $1.91 a share.
In September, its executives said Wall Street estimates
calling for a profit of $1.79 a share for the full year were
Shares were up 8 percent at $42.40 in trading after the
bell. They had closed at $39.23 on the Nasdaq.
(Reporting by Dhanya Skariachan. Editing by Robert MacMillan,