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Bed Bath & Beyond (NASDAQ:BBBY) rose in morning trades, erasing an earlier loss as the home-furnishings retailer reported fiscal second-quarter same-store sales that missed expectations, which was overpowered by a profit that was in line with forecasts and a new $2.5bn share buyback plan.
Shares rose 3.2% to $61.23 at 11:25 a.m. in New York on Friday. The stock had lost as much as 2.6% in after-hours on Thursday.
Same-store sales increased 0.7% in the three months ended August 29, from a year ago, the Union, New Jersey-based company said in a statement late Thursday. That lagged behind the consensus for 2.2% growth, according to FactSet.
Net income decreased to $201.7mln, or $1.21 per share, in the August quarter, from $224mln, or $1.17 per share, a year earlier. Analysts, on average were looking for $1.21 per share, according to Capital IQ data.
Sales grew to $3bn from $2.94bn, lagging behind the Wall Street consensus of $3.03 billion.
The company said its new $2.5bn billion share buyback program start upon completion of the existing program in which $305mln remains.