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Press release from PR Newswire

Bed Bath & Beyond Inc. Reports Results for Fiscal First Quarter

Wednesday, June 22, 2011

Bed Bath & Beyond Inc. Reports Results for Fiscal First Quarter16:15 EDT Wednesday, June 22, 2011- Net Earnings per Diluted Share of $.72 - Quarterly Net Sales Increase by Approximately 9.7% - Quarterly Comparable Store Sales Increase by Approximately 7.0% - Modeling Fiscal Second Quarter 2011 Net Earnings per Diluted Share of Approximately $.77 to $.82 - Full Year Net Earnings per Diluted Share Modeled to Increase Approximately 15% to 20%; Previously Modeled at Approximately 10% to 15%UNION, N.J., June 22, 2011 /PRNewswire/ -- Bed Bath & Beyond Inc. (Nasdaq: BBBY) today reported net earnings of $.72 per diluted share ($180.6 million) in the fiscal first quarter ended May 28, 2011, an increase of approximately 38% versus net earnings of $.52 per diluted share ($137.6 million) in the same quarter a year ago.  Net sales for the fiscal first quarter of 2011 were approximately $2.110 billion, an increase of approximately 9.7% from net sales of approximately $1.923 billion reported in the fiscal first quarter of 2010.  Comparable store sales in the fiscal first quarter of 2011 increased by approximately 7.0%, compared with an increase of approximately 8.4% in last year's fiscal first quarter. During the fiscal first quarter of 2011, the Company repurchased approximately $245 million of its common stock representing approximately 4.8 million shares. This included the completion of the $1 billion share repurchase program authorized in 2007.  As of May 28, 2011, the balance remaining of the share repurchase program authorized in December 2010 was approximately $1.892 billion dollars.The Company is now modeling net earnings per diluted share to be approximately $.77 to $.82 for the fiscal second quarter of 2011 and to increase by approximately 15% to 20% for all of fiscal 2011.  As of May 28, 2011, the Company had a total of 1,142 stores, including 984 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 66 Christmas Tree Shops stores, 47 buybuy BABY stores and 45 stores under the names of Harmon or Harmon Face Values.  During the fiscal first quarter, the Company opened three Bed Bath & Beyond stores and two buybuy BABY stores and closed one Bed Bath & Beyond store and one Harmon store. Consolidated store space as of May 28, 2011 was approximately 35.2 million square feet. Since the beginning of the second quarter of fiscal 2011 on May 29, 2011, one additional Bed Bath & Beyond store, one Christmas Tree Shops store and five buybuy BABY stores have 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.  Domestics merchandise includes categories such as bed linens and related items, bath items and kitchen textiles.  Home furnishings include categories such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and certain juvenile products.  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, approximate, estimate, assume, continue, model, 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; disruptions to the Company's information technology systems including but not limited to security breaches of the Company's systems protecting consumer and employee information; changes to statutory, regulatory and legal requirements; changes to, or new, tax laws or interpretation of existing tax laws; and changes to, or new, accounting standards including, without limitation, changes to lease accounting standards.  The Company does not undertake any obligation to update its forward-looking statements.  BED BATH & BEYOND INC. AND SUBSIDIARIESConsolidated Statements of Earnings(in thousands, except per share data)(unaudited)Three Months EndedMay 28,May 29,20112010Net sales$2,109,951$1,923,051Cost of sales1,252,3791,148,015      Gross profit857,572775,036Selling, general and administrative expenses568,624549,642      Operating profit288,948225,394Interest income552516      Earnings before provision for income taxes289,500225,910Provision for income taxes108,92288,357      Net earnings$180,578$137,553Net earnings per share - Basic$0.74$0.53Net earnings per share - Diluted$0.72$0.52Weighted average shares outstanding - Basic245,546259,400Weighted average shares outstanding - Diluted249,799263,638BED BATH & BEYOND INC. AND SUBSIDIARIESConsolidated Balance Sheets(in thousands, unaudited)May 28,May 29,20112010AssetsCurrent assets:      Cash and cash equivalents$1,228,973$1,083,985      Short term investment securities603,901560,174      Merchandise inventories2,083,0081,846,140      Other current assets363,665292,054            Total current assets4,279,5473,782,353Long term investment securities118,343133,835Property and equipment, net1,108,6211,103,367Other assets311,022341,471$5,817,533$5,361,026Liabilities and Shareholders' EquityCurrent liabilities:      Accounts payable$844,247$678,685      Accrued expenses and other current liabilities301,477271,193      Merchandise credit and gift card liabilities192,250175,404      Current income taxes payable111,41889,400            Total current liabilities1,449,3921,214,682Deferred rent and other liabilities304,465257,312Income taxes payable127,899105,813            Total liabilities1,881,7561,577,807Total shareholders' equity3,935,7773,783,219$5,817,533$5,361,026BED BATH & BEYOND INC. AND SUBSIDIARIESConsolidated Statements of Cash Flows(in thousands, unaudited)Three Months EndedMay 28,May 29,20112010Cash Flows from Operating Activities:      Net earnings$180,578$137,553      Adjustments to reconcile net earnings to net cash            provided by operating activities:            Depreciation44,22145,013            Stock-based compensation13,71711,836            Tax benefit from stock-based compensation (3,897)(2,679)            Deferred income taxes(14,042)(1,303)            Other(454)(304)            (Increase) decrease in assets:                  Merchandise inventories(114,101)(86,437)                  Trading investment securities(1,670)(1,139)                  Other current assets(10,726)(19,122)                  Other assets399128            Increase (decrease) in liabilities:                  Accounts payable139,92677,767                  Accrued expenses and other current liabilities(5,558)(10,681)                  Merchandise credit and gift card liabilities(811)2,600                  Income taxes payable26,6057,957                  Deferred rent and other liabilities4,14711,094      Net cash provided by operating activities258,334172,283Cash Flows from Investing Activities:      Purchase of held-to-maturity investment securities(365,491)(377,860)      Redemption of held-to-maturity investment securities365,625217,520      Redemption of available-for-sale investment securities7,05030,850      Capital expenditures(33,142)(39,032)      Net cash used in investing activities(25,958)(168,522)Cash Flows from Financing Activities:      Proceeds from exercise of stock options57,62968,364      Excess tax benefit from stock-based compensation249962      Repurchase of common stock, including fees(244,868)(85,202)      Net cash used in financing activities(186,990)(15,876)      Net increase (decrease) in cash and cash equivalents45,386(12,115)Cash and cash equivalents:      Beginning of period1,183,5871,096,100      End of period$1,228,973$1,083,985SOURCE Bed Bath & Beyond Inc.For further information: Kenneth C. Frankel, +1-908-855-4554, or Eugene A. Castagna, +1-908-855-4110