There isn't very much good news out there in the media anymore when it comes to economic times in the United States. So when a retailer announces an increase in their first quarter in terms of consumer spending? Heck, in this economy, Americans will take any good news as a sign of hope for improvement in the future.
New York Times Article
The New York Times, among other news outlets including many websites, is reporting that the home furnishings retailer Bed Bath and Beyond first quarter profit beat business model and Wall Street expectations as consumers are apparently showed a trend in home spending.continued to splurge on their homes. They also reported that Bed Bath and Beyond company forecast weak second-quarter earnings.
Bed Bath and Beyond News
The net earnings of Bed Bath and Beyond increased 57.8% to $137.6 million or 52 cents a share, compared with $87.2 million, or 34 cents a share, last year. Sales rose 13.5 percent to $1.92 billion, ahead of Wall Street’s expectations for sales of $1.89 billion.
Sales at stores that have been open at least a year rose 8.4 percent. As of the end of May, the company had a total of 1,104 stores, including 967 Bed Bath & Beyond stores. The company plans to enter its 50th state, Hawaii, in the current second quarter, and it expects to open about 55 to 60 stores in 2010.
Words From the CEO
"While it appears that the economic environment may be stabilizing, persistent high unemployment and uncertainty in the economy could continue to pressure consumers and affect their spending," said CEO Steven Temares. In a conference call recently (reported by Homechannelnews.com) the CEO said, "We remain committed to and are excited about the continued growth of all of our merchandise offerings. We continue to apply our stringent standards to growth as we evaluate new store sites, as well as continue to review our existing locations and lease terms for opportunities to relocate and/or right-size our stores in response to changing market conditions."
Money being spent on American homes could, in an optimistic world, be a sign of people selling or buying homes in the future. So perhaps the news out of Bed Bath and Beyond this month represents a small indicator of home spending and could potentially mean a glimmer of hope for good news across a depressed and exhausted American economy: an economy that sure could use the good news.
Mary McCarthy - Mary T. McCarthy is the blogger at pajamasandcoffee.com and Editor of Chesapeake Family magazine.
