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From AP:

OVERVIEW: Home furnishings retailer Bed Bath & Beyond operated 742 namesake superstores as of the end of February, in addition to Christmas Tree Shops Inc., a discount home merchandise chain, and Harmon Stores Inc., a discount health and beauty retail chain.

BY THE NUMBERS: The retailer didn't provide any financial forecasts in its previous earnings release in April. Wall Street expects a quarterly profit of 35 cents per share on projected sales of $1.39 billion, according to a poll by Thomson Financial.

ANALYST TAKE: "Despite concern over a softening macro environment, we remain very comfortable with our first-quarter estimate of 35 cents per share, which is in line with guidance and consensus," Lehman Brothers analyst Alan Rifkin wrote in a June 15 client note. "From a risk/reward standpoint, we like the stock ahead of first-quarter earnings."

Rifkin added that as the home furnishings space continues to experience difficulties, "we believe it is prudent to focus on companies like Bed Bath & Beyond, where fundamental execution remains solid."

WHAT'S AHEAD: Rising interest rates and stubbornly high energy prices are damping consumer spending. Additionally, mass market discounters like Target and specialty retailers like Pier 1 Imports have made the home furnishings space intensely competitive.

STOCK PERFORMANCE: Bed Bath & Beyond's stock recently traded at $36.60 on the New York Stock Exchange, and is up slightly so far this year. It hit a 52-week low of $34.38 on June 14 and is off 22 percent from a year-high of $46.99 hit in July 2005.

Posted by edelfenbein at June 19, 2006 3:15 PM