Bed Bath & Beyond hopes its online success rubs off on its stores
September 27, 2016 03:33 PM
Home furnishings retail chain Bed Bath & Beyond Inc. is hoping its strong online sales growth can provide a boost to its in-store sales.
While Bed Bath & Beyond, No. 67 in the Internet Retailer 2016 Top 500 Guide, does not break out online sales in its quarterly earnings filings, comparable sales from the retailer’s “customer-facing digital channels grew in excess of 20% in the second quarter [ended Aug. 27],” said vice president of investor relations Janet Barth on the retail chain’s fiscal second quarter earnings call according to a transcript from Seeking Alpha. That compares to comparable store sales that declined in the “low single-digit percentage range,” she said.
CEO Steven Temares said the company is working on a number of website improvements aimed at driving sales growth online and in stores. For example, the retailer plans to add chat and in-store appointment scheduling [for customers to meet with wedding registry consultants] on its mobile website. It also plans to add interactive tools to help consumers build a registry, as well as bolster its site search by improving its algorithm.
For the second quarter ended Aug. 27, Bed Bath & Beyond reported:
- Net sales of $2.988 billion, down slightly from $2.995 billion last year.
- Net earnings of $167.3 million, down 17.1% from $201.7 million.
- A year-over-year comparable sales including e-commerce decline of 1.2%.
For the first six months of 2016, Bed Bath & Beyond reported:
- Net sales of $5.726 billion, down slightly from $5.734 billion last year.
- Net earnings of $290.0 million, down 19.5% from $360.1 million.