Stimulus Purchases Drive Bed Bath & Beyond Shares Higher Than Expected
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.
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.
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.
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