The housing market is cooling off, huh? Well, that's the word on the street. Just don't say that to Bed Bath & Beyond
Net sales for the quarter increased 12.3% compared with the same period a year ago. Comparable same-store sales contributed nicely with a 4.8% increase. The remainder of the top-line growth came from new store openings. In the second quarter, it added 11 units, with seven more coming onboard in the third quarter. That will bring the company-wide store total to 769.
Bed Bath & Beyond's performance is particularly impressive in light of the dismal results from its competitor Pier 1 Imports
To be fair, Bed Bath & Beyond has also faced some challenges recently -- not quite to Pier 1's level, admittedly -- and the market responded by kicking its stock to the curb. However, after investigating Bed Bath & Beyond, I noted that another's trash is someone else's treasure and advised investors to take a closer look at the company. Since then, from its July low of $31, the stock has rebounded nicely to its current level of roughly $38.
The company's conference call was not all that informative, though management did indicate that third-quarter sales should continue along their current pace, with an estimated 3% to 5% increase in comps and low-teens top-line growth. But looking even further ahead, long-term shareholders can take comfort in knowing that management is holding steady with its targeted estimate of roughly 1,300 stores in the U.S. market alone.
With plenty of growth opportunities supported by a well-run operation, Bed Bath & Beyond still holds value for long-term-minded shareholders.
Read on to see how other retailers are faring:
- Find out what's shining at Restoration Hardware.
- Williams-Sonoma has a dugout full of ideas to fuel long-term growth.
- Should investors jump off of Pier 1?
Fool contributor Jeremy MacNealy has no financial interest in any company mentioned.