The Bed Bath & Beyond revival continues as the home specialty store reported strong sales gains across several key categories in its fiscal year first quarter.
For the three-month period ended May 29, total company sales were $1.95 billion, up 49% year-over-year. The first quarter in 2020 was at the height of lockdown during the COVID-19 pandemic. Net loss for the first quarter was $59 million, an improvement from the net loss of $302 million in the same quarter the previous year.
“We have started the year in a position of strength and are clearly on track to accomplish our goals,” said Mark Tritton, the retailer’s president and CEO. “2021 marks the first year of our three-year transformation following the groundwork we laid in 2020 – a year of historic and necessary change for this organization against the backdrop of unprecedented challenges due to COVID-19.”
During an investor conference call announcing first-quarter results, Tritton said digital sales remain strong and on par with 2020 even as shoppers return to stores. Digital penetration is nearly double the company’s 2019 levels.
Additionally, Bed Bath & Beyond continues moving forward with its store remodel program. During the first quarter, 26 full remodels were initiated keeping the retailer on track to hit its goal of 130 to 150 remodels planned for this year.
“Early data from our remodel shows positive indications of sales and margin growth are exceeding our plans both our prototype A and B upgrades in our pilot Houston market,” Tritton said.
Bed Bath & Beyond will also soon unveil its flagship store in New York City’s Chelsea neighborhood. The store will feature new concepts, fixtures, open sightlines and updated merchandise along with a customer-centric layout.
On the product side, the retailer has reached its first-half goal of launching six new Owned Brands collections, with two more on the way.
“Our own-brand penetration is currently at a high-teens percentage, almost double last year’s levels,” Tritton said. “We are well on our way to our 20% goal for 2021, and 30% by 2023.”