Bed Bath & Beyond's turnaround is underway.
The housing retailer raised its full-year outlook for fiscal 2021 on Wednesday after kicking off its three-year transformation in the first quarter, which includes a remodeling of its stores and the launch of new private label brands.
"We have started the year in a position of strength and are clearly on track to accomplish our goals," Bed Bath & Beyond CEO Mark Tritton said.
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The company raised its full-year net sales forecast to a range of $8.2 billion to $8.4 billion, up from $8 billion to $8.2 billion, and its comparable sales growth estimate, which tracks revenue from purchases made online and at stores open for at least 12 months, to the low single digits rather than flat. Bed Bath & beyond expects adjusted earnings per share in the range of $1.40 to $1.55.
The revised outlook comes after the company reported mixed first-quarter earnings results.
Net sales surged 49% year-over-year to $1.95 billion, up from $1.3 billion a year ago, surpassing analyst estimates of $1.87 billion. Core sales, which includes the Bed Bath & Beyond, Buybuy Baby, Harmon Face Values and Decorist brands, rose 73% year-over-year. Digital sales accounted for 38% of net sales as customers took advantage of curbside pickup and same-day delivery through Bed Bath & Beyond's recently established partnership with DoorDash.
Bed Bath & Beyond's banner sales increased 96% year-over-year, driven primarily by growth in categories including bedding, bath, kitchen food prep, indoor décor, and home organization. Comparable sales grew 86% year-over-year in the quarter.
Bed Bath & Beyond also narrowed its first-quarter losses to $51 million, or 48 cents per share, from $302 million, or $2.44 per share, a year ago.
During the first quarter, Bed Bath & Beyond launched its new bedding and bath label, Nestwell, a spa-inspired line Haven, and an everyday basics line called Simply Essential.
In June, the company launched Our Table, a new line of modern kitchen and dining wares, and Wild Sage, an indoor décor brand targeting younger consumers, including Gen Z and millennials, with 600 products for the bedroom, bath, and other living spaces. Squared Away, a line of 300 products around storage, organization, and cleaning, will also launch next month. Private label sales are expected to represent 30% of Bed Bath & Beyond's business by 2023.
The company, which operates 1,004 stores as of May 29, including 818 Bed Bath & Beyond stores, remodeled 26 store locations in the first quarter.