Stimulus Purchases Drive Bed Bath & Beyond Shares Higher Than Expected

Bed Bath & Beyond
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Bed Bath & Beyond’s shares rose 3.9% on Friday after CEO Mark Tritton made comments that the household items company exceeded growth expectations in March, Yahoo! reports.

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Consumers appear to have been using stimulus checks in droves to make small upgrades to their homes. Tritton said in a conversation with “Yahoo Finance Live,” “We have seen overall growth, February was strong. We saw the results in March come about 10% growth. We are dramatically exceeding that growth rate in the month of March.”

Accelerated vaccination rates have contributed to a surge in retail sales in recent months. According to the Department of Commerce, advance estimates of U.S. retail and food services for March 2021 increased 9.8% from the previous month and 27.7% above March 2020. Total sales for January 2021 through March 2021 were up 14.3% from the same period a year ago.

See: What Do Retail Sales Mean for the Economy?
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Consumer retail confidence has increased as the economy has been picking up post-pandemic. For Bed Bath & Beyond in particular, the increased consumer spending is a positive turnaround from a dismal past week. Shares for the company plunged 16% last week as the company announced more store closures in 2021 and offered a mixed first quarter report, Yahoo! reports.

Despite the share drop, Tritton thinks the momentum will continue in the months ahead as the economy continues to pick back up and people begin to spend pent-up savings.

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About the Author

Georgina Tzanetos is a former financial advisor who studied post-industrial capitalist structures at New York University. She has eight years of experience with concentrations in asset management, portfolio management, private client banking, and investment research. Georgina has written for Investopedia and WallStreetMojo. 

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