- Bed Bath & Beyond Inc. (NASDAQ: BBBY) announced an 85% surge in e-commerce revenue on Monday
Bed Bath & Beyond Inc. (NASDAQ: BBBY) announced its quarterly earnings this week and reported that it saw a surge in online sales. As a result of the surge in online sales, Bed Bath & Beyond converted some of its shuttered stores into fulfillment centers.
The e-commerce revenue for Bed Bath & Beyond Inc. (NASDAQ: BBBY) surged 85% in April. And following the earnings report, the Bed Bath & Beyond Inc. (NASDAQ: BBBY) closed at 22.6% higher at $6.41 on Monday.
However, this jump in e-commerce revenue does not offset the lost revenue from the temporary store closures. The temporary store closures were recently extended to May 16 from May 2.
“Bed Bath & Beyond is rapidly evolving to meet the changing needs of its customers during this time. The Company has converted approximately 25% of its stores across the US and Canada into regional fulfillment centers, almost doubling its digital fulfillment capacity, to support a significant rise in online sales. It has also commenced curbside pick-up at its Harmon stores, and introduced BOPIS and curbside pick-up at all BABY stores and Bed Bath & Beyond stores in Canada. In line with changing guidance, the Company will now extend BOPIS and contactless, curbside delivery services to customers at certain Bed Bath & Beyond stores in the US, starting with a number of stores across Florida and Texas, subject to state and local regulations,” said Bed Bath & Beyond Inc. (NASDAQ: BBBY) in a statement on Friday.
Hundreds of new positions were created in the company’s e-commerce distribution center in order to meet the increase in demand across digital channels.
Bed Bath & Beyond Inc. (NASDAQ: BBBY) said that its adjusted earnings for the three months ended March 2 were 38 cents a share. This is down 68% from the prior year but was 18 cents ahead of analyst expectations.
Bed Bath & Beyond Inc. (NASDAQ: BBBY) said that its net sales fell 6.1% to $3.1 billion — which top analyst estimates of $3 billion. And comparable-store sales fell 10% while digital sales fell 16%.
And Bed Bath & Beyond Inc. said it would not provide profit guidance for the current fiscal year. Plus the company will be suspending plans to spend $600 million on share buybacks, dividends, and debt reduction.