Retail bullish stock to watch: Bed Bath & Beyond Inc. (NASDAQ: BBBY)

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Bed Bath & Beyond Inc. (NASDAQ: BBBY) stock continued its bullish momentum on January 10th, 2019 (Source: Google finance).

BBBY in the third quarter of FY 18 has reported the adjusted earnings per share of 18 cents, beating the analysts’ estimates for the adjusted earnings per share of 17 cents. The company had reported the adjusted revenue growth of 2.6 percent to $3 billion in the third quarter of FY 18, missing the analysts’ estimates for revenue of $3.04 billion. The revenue grew due to the calendar shift of the post Thanksgiving week into the third quarter and out of the fourth quarter partially offset by actions taken during the quarter in support of our stronger bias towards driving profitability improvement.

Retail bullish stock to watch: Bed Bath & Beyond Inc. (NASDAQ: BBBY)

Comparable sales in the fiscal 2018 third quarter declined by approximately 1.8%, and included strong sales growth from the Company’s customer-facing digital channels, and sales from stores that declined in the mid-single-digit percentage range.

Moreover, during the third quarter, the retail inventories ended at about $2.9 billion, down about 6% from the end of the prior year period and has contributed to our strong cash and investments balance of approximately $1 billion, which is nearly double the amount of cash and investments the company had at the end of the fiscal 2017 third quarter. Further, gross margin in the quarter was approximately 33.1% of net sales as compared to approximately 35.2% in the third quarter of last year. In order of magnitude, this decrease as a percentage of net sales was primarily due to a decrease in merchandise margin and an increase in coupon expense. The increase in coupon expense was the result of an increase in the average coupon amount partially offset by a decrease in the number of redemptions.

BBBY declared a quarterly dividend of $.16 per share payable on April 16, 2019 to shareholders of record at the close of business on March 15, 2019. During the fiscal 2018 third quarter, the Company repurchased approximately $8 million of its common stock, representing approximately 527,000 shares. The Company ended the fiscal 2018 third quarter with approximately $1.0 billion in cash and investments, an increase of approximately $460 million, compared with approximately $561 million in cash and investments at the end of the fiscal 2017 third quarter.

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