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BBBY dominates home space with another solid quarter

UNION, N.J. — Bed Bath & Beyond's aggressive promotional strategy appears to be paying off as the company reported another quarter of strong sales. The company reported that net sales for the fiscal second quarter of 2011 were approximately $2.314 billion, an increase of approximately 8.3% from net sales of approximately $2.137 billion reported in the fiscal second quarter of 2010. Comparable-store sales in the fiscal second quarter of 2011 increased by approximately 5.6%, compared with an increase of approximately 7.4% in last year's fiscal second quarter.

Bed Bath & Beyond's bottom line also saw a boost, with the company reporting net earnings of 93 cents per diluted share ($229.4 million) in the fiscal second quarter ended Aug. 27, an increase of approximately 33% versus net earnings of 70 cents per diluted share ($181.8 million) in the same quarter a year ago. 

During the fiscal second quarter, the company opened three Bed Bath & Beyond stores, seven buybuy BABY stores and four Christmas Tree Shops stores and closed one Bed Bath & Beyond store. As of Aug. 27, the company had a total of 1,155 stores, including 986 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 70 Christmas Tree Shops stores, 54 buybuy BABY stores and 45 stores under the names of Harmon or Harmon Face Values. 

For the fiscal first half ended Aug. 27, the company reported net earnings of $1.65 per diluted share ($410 million), an increase of approximately 35% over net earnings of $1.22 per diluted share ($319.3 million) in the corresponding period a year ago.  Net sales for the fiscal first half of 2011 were approximately $4.424 billion, an increase of approximately 9% from net sales of approximately $4.06 billion in the corresponding period a year ago.  Comparable-store sales for the fiscal first half of 2011 increased by approximately 6.3%, compared with an increase of approximately 7.9% in last year's fiscal first half.

Following an impressive second quarter, Bed Bath & Beyond expects net earnings per diluted share to be approximately 82 cents to 87 cents for the fiscal third quarter of 2011 and to increase by approximately 22% to 25% for all of fiscal 2011.  

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