September 25, 2013 / 9:32 PM / 4 years ago

Bed Bath & Beyond posts strong profit, shares rise

(Reuters) - Bed Bath and Beyond Inc (BBBY.O) reported an 18 percent jump in second-quarter profit as the U.S. housing market recovery spurs demand for the home goods chain’s products.

A passerby walks in front of a Bed, Bath, and Beyond in New York, June 23, 2010. REUTERS/Keith Bedford

Bed Bath’s shares were up 5 percent after the bell. They had closed at $74.22 on Wednesday on the Nasdaq.

The home merchandise category has remained comparatively strong as many U.S. retailers struggle to cope with cautious consumer spending.

Consumers have been spending more on household goods as demand for new homes soar.

Earlier this month, high-end home furnishing retailer Restoration Hardware Holdings Inc (RH.N) reported second-quarter results that surpassed Wall Street expectations and raised its full-year earnings forecast.

Bed Bath and Beyond forecast third-quarter earnings of $1.11 to $1.16 per share, largely above Wall Street estimates of $1.12.

Profit rose to $249.3 million, or $1.16 per share, in the quarter ended August from $224.3 million, 98 cents per share, last year.

Net sales rose 9 percent to $2.82 billion, while comparable store sales rose 3.7 percent.

Analysts on average had expected second-quarter earnings of $1.15 per share on revenue of $2.81 billion, according to Thomson Reuters I/B/E/S.

Reporting by Chris Peters in Bangalore; Editing by Anthony Kurian

Our Standards:The Thomson Reuters Trust Principles.
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