BED BATH & BEYOND
Investor Relations
News Release
Printer Friendly Version View printer-friendly version
<< Back
Bed Bath & Beyond Inc. Reports Results for Fiscal First Quarter

- Net Earnings per Diluted Share of $.52
- Quarterly Comparable Store Sales Increase by 8.4%
- Quarterly Net Sales Increase by 13.5%

UNION, N.J., June 23, 2010 /PRNewswire via COMTEX/ --Bed Bath & Beyond Inc. (Nasdaq: BBBY) today reported net earnings of $.52 per diluted share ($137.6 million) in the fiscal first quarter ended May 29, 2010, an increase of approximately 53% versus net earnings of $.34 per diluted share ($87.2 million) in the same quarter a year ago. Net sales for the fiscal first quarter of 2010 were approximately $1.923 billion, an increase of approximately 13.5% from net sales of approximately $1.694 billion reported in the fiscal first quarter of 2009. Comparable store sales in the fiscal first quarter of 2010 increased by approximately 8.4%, compared with a decrease of approximately 1.6% in last year's fiscal first quarter.

For the fiscal second quarter of 2010, the Company is modeling net earnings per diluted share to be approximately $.59 to $.63. For fiscal 2010, the Company is modeling net earnings per diluted share to increase by approximately 15%.

As of May 29, 2010, the Company had a total of 1,104 stores, including 967 Bed Bath & Beyond stores in 49 states, the District of Columbia, Puerto Rico and Canada, 61 Christmas Tree Shops stores, 31 buybuy BABY stores and 45 stores under the names of Harmon or Harmon Face Values. During the fiscal first quarter, the Company opened two Bed Bath & Beyond stores and two buybuy BABY stores. Consolidated store space as of May 29, 2010 was approximately 33.9 million square feet. Since the beginning of the second quarter of fiscal 2010 on May 30, 2010, one additional Bed Bath & Beyond store has been opened. In addition, the Company is a partner in a joint venture which operates two stores in the Mexico City market under the name "Home & More."

Bed Bath & Beyond Inc. and subsidiaries (the "Company") is a chain of retail stores, operating under the names of Bed Bath & Beyond, Christmas Tree Shops, Harmon, Harmon Face Values and buybuy BABY. In addition, the Company is a partner in a joint venture which operates retail stores in Mexico under the name "Home & More." The Company sells a wide assortment of domestics merchandise and home furnishings, which include food, giftware, health and beauty care items and infant and toddler merchandise. Shares of Bed Bath & Beyond Inc. are traded on NASDAQ under the symbol "BBBY" and are included in the Standard and Poor's 500 and Global 1200 Indices and the NASDAQ-100 Index. The Company is counted among the Fortune 500 and the Forbes 2000.

This press release may contain forward-looking statements. Many of these forward-looking statements can be identified by use of words such as may, will, expect, anticipate, estimate, assume, continue, project, plan, and similar words and phrases. The Company's actual results and future financial condition may differ materially from those expressed in any such forward-looking statements as a result of many factors that may be outside the Company's control. Such factors include, without limitation: general economic conditions including the housing market, a challenging overall macroeconomic environment and related changes in the retailing environment, consumer preferences and spending habits; demographics and other macroeconomic factors that may impact the level of spending for the types of merchandise sold by the Company; unusual weather patterns; competition from existing and potential competitors; competition from other channels of distribution; pricing pressures; the cost of labor, merchandise and other costs and expenses; the ability to find suitable locations at acceptable occupancy costs to support the Company's expansion program; the impact of failed auctions for auction rate securities held by the Company; and matters arising out of or related to the Company's stock option grants and procedures and related matters, including any tax implications relating to the Company's stock option grants. The Company does not undertake any obligation to update its forward-looking statements.


                  BED BATH & BEYOND INC. AND SUBSIDIARIES
                    Consolidated Statements of Earnings
                   (in thousands, except per share data)
                                (unaudited)


                                                Three Months Ended
                                                ------------------

                                              May 29,          May 30,
                                                   2010             2009
                                                   ----             ----

    Net sales                                $1,923,051       $1,694,340
    Cost of sales                             1,148,015        1,027,522
                                              ---------        ---------
        Gross profit                            775,036          666,818
    Selling, general and administrative
     expenses                                   549,642          524,514
                                                -------          -------
        Operating profit                        225,394          142,304
    Interest income                                 516            1,767
                                                    ---            -----
        Earnings before provision for income
         taxes                                  225,910          144,071
    Provision for income taxes                   88,357           56,899
                                                 ------           ------
        Net earnings                           $137,553          $87,172
                                               ========          =======

    Net earnings per share - Basic                $0.53            $0.34
    Net earnings per share - Diluted              $0.52            $0.34

    Weighted average shares outstanding -
     Basic                                      259,400          256,942
    Weighted average shares outstanding -
     Diluted                                    263,638          258,764


                   BED BATH & BEYOND INC. AND SUBSIDIARIES
                         Consolidated Balance Sheets
                          (in thousands, unaudited)


                                                    May 29,          May 30,
                                                         2010             2009
                                                         ----             ----
    Assets

    Current assets:
      Cash and cash equivalents                    $1,083,985         $855,434
      Short term investment securities                560,174            2,000
      Merchandise inventories                       1,846,140        1,703,819
      Other current assets                            292,054          272,681
                                                      -------          -------

        Total current assets                        3,782,353        2,833,934
                                                    ---------        ---------

    Long term investment securities                   133,835          216,196
    Property and equipment, net                     1,103,367        1,120,393
    Other assets                                      341,471          335,531
                                                      -------          -------

                                                   $5,361,026       $4,506,054
                                                   ==========       ==========

    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable                               $678,685         $603,402
      Accrued expenses and other current
       liabilities                                    271,193          247,256
      Merchandise credit and gift card
       liabilities                                    175,404          160,629
      Current income taxes payable                     89,400           55,361
                                                       ------           ------

        Total current liabilities                   1,214,682        1,066,648
                                                    ---------        ---------

    Deferred rent and other liabilities               257,312          232,790
    Income taxes payable                              105,813           96,264
                                                      -------           ------

        Total liabilities                           1,577,807        1,395,702
                                                    ---------        ---------

    Total shareholders' equity                      3,783,219        3,110,352
                                                    ---------        ---------

                                                   $5,361,026       $4,506,054
                                                   ==========       ==========


                   BED BATH & BEYOND INC. AND SUBSIDIARIES
                    Consolidated Statements of Cash Flows
                          (in thousands, unaudited)


                                                     Three Months Ended
                                                     ------------------

                                                    May 29,        May 30,
                                                        2010           2009
                                                        ----           ----

    Cash Flows from Operating Activities:

      Net earnings                                  $137,553        $87,172
      Adjustments to reconcile net earnings to
       net cash
        provided by operating activities:
        Depreciation                                  45,013         44,779
        Stock-based compensation                      11,836         11,010
        Tax benefit from stock-based compensation     (2,679)           (55)
        Deferred income taxes                         (1,303)        (5,081)
        Other                                           (304)            54
        (Increase) decrease in assets:
         Merchandise inventories                     (86,437)       (61,480)
         Trading investment securities                (1,139)        (2,439)
         Other current assets                        (19,122)       (16,998)
         Other assets                                    128            170
        Increase (decrease) in liabilities:
         Accounts payable                             77,767         98,819
         Accrued expenses and other current
          liabilities                                (10,681)         2,220
         Merchandise credit and gift card
          liabilities                                  2,600         (4,992)
         Income taxes payable                          7,957         34,856
         Deferred rent and other liabilities          11,094          6,274
                                                      ------          -----

      Net cash provided by operating activities      172,283        194,309
                                                     -------        -------

    Cash Flows from Investing Activities:

      Purchase of held-to-maturity investment
       securities                                   (377,860)             -
      Redemption of held-to-maturity
       investment securities                         217,520              -
      Redemption of available-for-sale
       investment securities                          30,850          7,600
      Capital expenditures                           (39,032)       (26,588)
                                                     -------        -------

      Net cash used in investing activities         (168,522)       (18,988)
                                                    --------        -------

    Cash Flows from Financing Activities:

      Proceeds from exercise of stock options         68,364         23,303
      Excess tax benefit from stock-based
       compensation                                      962          1,712
      Repurchase of common stock, including fees     (85,202)       (13,111)
                                                     -------        -------

      Net cash (used in) provided by financing
       activities                                    (15,876)        11,904
                                                     -------         ------

      Net (decrease) increase in cash and cash
       equivalents                                   (12,115)       187,225

    Cash and cash equivalents:
      Beginning of period                          1,096,100        668,209
                                                   ---------        -------
      End of period                               $1,083,985       $855,434
                                                  ==========       ========



SOURCE Bed Bath & Beyond Inc.