Shift in Housing Sentiment Not Enough to Drive Pick Up in Spending at Bed Bath & Beyond (BBBY)

Shares of Bed Bath & Beyond, Inc. (NASDAQ: BBBY) are lower in after-hours trading on Wednesday. The home goods retailer reported Q2 revenue that was in-line with estimates at $2.59 billion. This was an increase of 12 percent compared to last year's revenue of 2.31 billion. Comparable store sales in the fiscal second quarter of 2012 increased by approximately 3.5%, compared with an increase of approximately 5.6% in last year's fiscal second quarter.

The earning picture at Bed Bath & Beyond was not as positive. At $0.98, Q2 EPS came in 4 cents worse than analyst estimates. In the same quarter of 2011, BBBY reported earnings of $0.93., which represents EPS growth of 5.4%.

In the third quarter, the company expects earnings between $0.99-1.04, versus the consensus of $1.02. Management also said they continue to model net earnings per diluted share to increase by a high single to a low double digit percentage range for all of fiscal 2012.

Prior to the earnings report, year-to-date gains in Bed Bath & Beyond stock totaled 17.8%, compared to the S&5 500 which is higher by 14.5%. A number of investors turned positive on the stock early this year given stabilization in housing. However, considering today's earning report it is clear that a follow through in home product related spending hasn't played along quick enough.

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