Bed Bath & Beyond Stock Jumps On Q1 Revenue Beat, Q2 Guidance Hike

Bed Bath & Beyond Inc BBBY reported first-quarter FY21 sales of $1.95 billion, up 49% year-on-year, beating the consensus estimate of $1.87 billion.
Core Sales grew 73%; Comparable Sales rose 86% Y/Y.
Sales were driven by growth in its key destination categories, which include Bedding, Bath, Kitchen Food Prep, Indoor Decor, and Home Organization.
Adjusted gross margin increased 820 basis points to 34.9%.
Adjusted EBITDA was $86 million.
Adjusted EPS of $0.05 missed the consensus of $0.08.
The company used $28.7 million in operating cash flow and ended the quarter with cash and equivalents of $1.2 billion.
Guidance: BBBY raised FY21 sales guidance to $8.2 billion-$8.4 billion from $8 billion-$8.2 billion earlier, versus a consensus of $8.15 billion.
It hiked adjusted EBITDA outlook to $520 million-$540 million from $500 million- $525 million earlier.
Bed Bath sees Q2 EPS of $0.48-$0.55 versus the consensus estimate of $0.52.
“For the first quarter, we delivered our fourth consecutive quarter of comparable sales growth with gross margin expansion exceeding our expectations,” said Mark Tritton, Chief Executive Officer.
Price action: BBBY shares are trading higher by 17.1% at $35.02 on the last check Wednesday.
Photo by Tesa Robbins from Pixabay