Bed Bath & Beyond posted a higher second-quarter profit on Wednesday, citing increased sales and a one-time tax benefit.
The U.S. household-products retailer said its second-quarter profit rose to $147 million, or 55 cents per share, from $145.5 million, or 51 cents per share in the year-earlier period.
Bed Bath & Beyond shares on Wednesday closed up 63 cents, or 1.90 percent, at $33.83. In after-hours trade, the stock gained as much as another $1.07, or 3.16 percent, at $34.90.
The company also announced that its board of directors authorized a new $1 billion share repurchase program, which will commence after the completion of the current share repurchase program.
This is the fourth share repurchase program authorized by the board since 2004, and upon the completion of the new program, Bed Bath & Beyond will have purchased almost $3 billion of its common shares, according to the company. No date has been established for the completion of the new program.
"Our Board took this action based upon its continued confidence in our Company's long-term growth potential, financial outlook and excess cash flow generation," said Steven Temares, chief executive officer and a company director, in a statement on the firm's Web site.
"It is currently anticipated that this new $1 billion share repurchase program will be funded from present and expected future free cash flows," he added.