Bed Bath & Beyond Plans Growth
Cecile Corral -- Home Accents Today, April 23, 2007
Bed Bath & Beyond is on plan to develop a new state-of-the-art distribution center for its Christmas Tree Shops division as well as a new e-service fulfillment center "to accommodate future growth," said Warren Eisenberg, co-chairman, during the 888-unit home textiles specialty retailer's fourth-quarter and year-end earnings call.
Underpinning that growth, the company noted, "Fiscal 2006 was the 15th consecutive year of record earnings since the company's 1992 IPO." For the year, BBB recorded sales of $6.6 billion, up 13.9% from $5.8 billion in 2005, and net earnings of $594.2 million, up 3.7% from $572.8 million a year ago. Comp-store sales rose 4.9% for the year.
For this new fiscal year, 2007, BBB said it expects to open approximately 70 new stores and relocate several existing units. The majority of the new store openings are slated for the second half of the fiscal year.
The company will also "improve and grow" its Christmas Tree Shops, Harmon Stores, and buybuy Baby operations — the latter was acquired in late March.
Steven Temares, ceo, described buybuy Baby as "an excellent strategic fit that will strengthen our company and permit us to satisfy customers in new ways by servicing another portion of their life cycle."
There are currently eight buybuy Baby units. "Bed Bath & Beyond's customer base includes many prospective and current parents as well as their relatives and friends — we believe this category of business has tremendous growth potential," Temares said.