Bed Bath & Beyond indicated its worst days may be behind it Wednesday, reporting second-quarter earnings that exceeded Wall Street's expectations and were 13 percent higher than a year ago.

The Union-based retailer posted earnings of 52 cents a share, beating expectations by 4 cents, on net income of $135.5 million. A year ago the company had second-quarter earnings of 46 cents on net income of $119.3 million. Net sales were $1.915 billion, up 3.3 percent from a year ago.

Bed Bath has cut costs and kept a tight rein on expenses to boost profits, according to analysts.

Analysts have been watching the housewares retailer as a key indicator of a recovering housing market. Bed Bath began to see its sales suffer before other retailers, as the housing market began to collapse in 2007.

Bed Bath's primary competitor, Linens 'N Things, closed its stores at the beginning of the year after filing for bankruptcy last year.

Bed Bath also did better than expected in a key indicator of a retailer's health, same-store sales -- sales at stores open at least a year. Same-store sales declined 0.6 percent. Bed Bath and analysts had forecast a decline in the low single digits.

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Bed Bath & Beyond Inc.

Second quarter 2009/Second quarter 2008

Revenue: $1.915 billion/ 1.854 billion

Earnings per share: 52 cents/ 46 cents

Net earnings: $135.5 million/ $119.3 million

Share price at close: $39.02

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