Bed Bath & Beyond’s turnaround efforts are beginning to take effect. In the first quarter, sales were up nearly 50%. But turning around a large company isn’t cheap, and earnings took a hit as the costs associated with so many new initiatives mounted. These initiatives include the rollout of a same-day delivery service (with a little help from DoorDash), increased investments in marketing, and the launch of multiple private label brands. Despite the earnings miss, Bed Bath & Beyond expressed confidence in the success of its turnaround, both in the long and the short term, hiking its full-year revenue outlook.
“We’re in the early stages of our transformation,” Chief Executive Mark Tritton said during an earnings conference call. “Our first-quarter results prove we continue to deliver profitable growth as we reestablish our authority in home.”