Bed Bath & Beyond shares rise as profit tops view

By Martinne Geller

NEW YORK (Reuters) - Bed Bath & Beyond Inc (BBBY.O) reported a quarterly profit on Tuesday that easily topped Wall Street estimates, as sales were not as bad as feared, helping to send shares of the home furnishings retailer up 13.7 percent in after-hours trading.

The company also said it was comfortable with analysts' estimates for the current quarter, and that Wall Street estimates for the full year "appeared reasonable."

Net income for the fourth quarter ended on February 28 fell to $141.4 million, or 55 cents per share, from $172.9 million, or 66 cents per share, a year earlier.

Sales slipped 0.5 percent to $1.923 billion, as sales at stores open at least a year, a key retail measure, fell 4.3 percent. A company executive said on a conference call that the 4.3 percent drop was at the better end of the expected range.

Analysts on average were expecting earnings of 44 cents per share and revenue of $1.915 billion, according to Reuters Estimates. In January, the company forecast earnings of 40 to 46 cents per share.

The decline of the U.S. housing market and recession have eroded demand for home furnishings, affecting Bed Bath & Beyond and peers like Pier 1 Imports Inc (PIR.N) and Williams-Sonoma Inc (WSM.N).

Earlier on Tuesday, Pier 1 reported a wider-than-expected quarterly loss as markdowns ate into its margins. But the company's shares rose 11 cents, or 17 percent, after it gave an encouraging margin outlook for the current fiscal year.

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