Online sales grow 40% for Bed Bath & Beyond in Q3 2014
January 14, 2015 10:59 AM
A 40% growth in online and mobile sales helped offset stagnant store sales for home furnishings retailer Bed Bath & Beyond in the third quarter of 2014, and the retailer says it’s planning to step up its online and mobile investments.
The retailer now offers more than 200,000 SKUs on its web site, an increase of 40% from January 2014, CEO Steven Temares said in the retailer’s earnings call, according to a transcript provided by Seeking Alpha. He said the company is relying on suppliers to drop ship many of the added products directly to consumers, and that the new selection includes many products beyond the home good that the retail chain built its business on.
“Our online offerings now include such things as a selection of jewelry and watches and we have greatly expanded online merchandise offerings for many categories such as audio and electronics, furniture, lighting, rouges, (and)pet care as well as lawn and garden.”
He said online and mobile sales increased 40% in the quarter ended Nov. 29, 2014, while comparable sales in bricks-and-mortar stores “were relatively flat.”
The retailer did not break out online sales in its third quarter financial report released last week. But for the third quarter ending November 29, 2014, Bed Bath & Beyond, No. 221 in the Internet Retailer Top 500 Guide, reported:
- Net sales of $2.94 billion, up 2.7% from $2.86 billion during the same period last year. A 40% increase in web and mobile web sales over the same period a year earlier.
- Comparable-store sales, which include physical stores and online channels, increased 1.7% over the same period a year earlier.
- Gross profit of $1.129 billion, up slightly from $1.122 billion over the same period a year earlier.
- Operating profit of $352.7 million, down 5.5% from $374.6 million over the same period a year earlier.
Temares said desktop and mobile traffic is up, but he did not say by how much.
“The investments we continue to make in our omnichannel capabilities are to position our company for long-term success,” he said. “We believe new features and improved technology have created a better customer experience and are contributing to our online sales growth.”
For the nine months ending November 29, 2014, Bed Bath & Beyond reported net sales of $8.54 billion, up 2.9% from $8.30 billion during the same period last year.