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Press release from PR Newswire

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

Wednesday, June 26, 2013

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

16:15 EDT Wednesday, June 26, 2013

- Net Earnings per Diluted Share of $.93
- Quarterly Comparable Store Sales Increase by Approximately 3.4%
- Quarterly Net Sales Increase by Approximately 17.8%
- Modeling Fiscal Second Quarter 2013 Net Earnings per Diluted Share of Approximately $1.11 to $1.16
- Modeling Fiscal 2013 (Fifty-Two Weeks) Net Earnings per Diluted Share to be Approximately $4.84 to $5.01, Consistent with Prior Estimate

UNION, N.J., June 26, 2013 /PRNewswire/ -- Bed Bath & Beyond Inc. today reported net earnings of $.93 per diluted share ($202.5 million) in the fiscal first quarter ended June 1, 2013, an increase of approximately 4.5% versus net earnings of $.89 per diluted share ($206.8 million) in the same quarter a year ago.  Net earnings per diluted share for the fiscal first quarter of 2013 included $.01 ($2.6 million) of distinct net tax benefits as compared to $.06 ($14.6 million) of distinct net tax benefits in the fiscal first quarter of 2012.  Net sales for the fiscal first quarter of 2013 were approximately $2.612 billion, an increase of approximately 17.8% from net sales of approximately $2.218 billion reported in the fiscal first quarter of 2012.  Comparable store sales in the fiscal first quarter of 2013 increased by approximately 3.4%, compared with an increase of approximately 3.0% in last year's fiscal first quarter.  

During the fiscal first quarter of 2013, the Company repurchased approximately $324 million of its common stock, representing approximately 5.0 million shares.  As of June 1, 2013, the remaining balance of the existing share repurchase program authorized in December 2012 was approximately $2.1 billion. 

The Company is modeling net earnings per diluted share to be approximately $1.11 to $1.16 for the fiscal second quarter of 2013 and, consistent with the prior estimate, to be approximately $4.84 to $5.01 for the full year, which will include Cost Plus, Inc. ("World Market") and Linen Holdings for all of fiscal 2013.  The modeling of net earnings per diluted share is based upon a number of planning assumptions which will be described in the Company's first quarter of fiscal 2013 conference call. Information regarding access to the call is available in the Investor Relations section of the Company's website, www.bedbathandbeyond.com.

The accompanying consolidated financial information for fiscal 2013 includes the accounts of Linen Holdings and World Market from the beginning of the fiscal year and for fiscal 2012, includes the accounts of Linen Holdings since the date of its acquisition on June 1, 2012 and World Market since the date of its acquisition on June 29, 2012.  Linen Holdings is excluded from the comparable store sales calculations and will continue to be excluded on an ongoing basis as long as it does not meet the Company's definition of comparable store sales.  World Market is excluded from the comparable store sales calculations for the fiscal first quarter of 2013 and will be included at the beginning of the fiscal third quarter of 2013.

As of June 1, 2013, the Company had a total of 1,478 stores, including 1,008 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 266 stores under the names of World Market or Cost Plus World Market, 83 buybuy BABY stores, 73 stores under the names of Christmas Tree Shops or andThat!, and 48 stores under the names of Harmon or Harmon Face Values.  During the fiscal first quarter, the Company opened four Bed Bath & Beyond stores, two World Market stores, one buybuy BABY store and one Harmon Face Values store and closed one Christmas Tree Shops store. Consolidated store space as of June 1, 2013 was approximately 42.2 million square feet. Since the beginning of the fiscal second quarter of 2013 on June 2, 2013, one buybuy BABY store has been opened.  In addition, the Company is a partner in a joint venture which operates three stores in the Mexico City market under the name Bed Bath & Beyond.

Bed Bath & Beyond Inc. and subsidiaries (the "Company") operates a chain of retail stores under the names of Bed Bath & Beyond, World Market, Cost Plus World Market, Christmas Tree Shops, andThat!, Harmon, Harmon Face Values and buybuy BABY.  The Company is also a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond.  Through its retail stores, 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.  Additionally, the Company includes Linen Holdings, a distributor of a variety of textile products, amenities and other goods to institutional customers in the hospitality, cruise line, food service, healthcare and other industries.  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. 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; civil disturbances and terrorist acts; unusual weather patterns and natural disasters; competition from existing and potential competitors; competition from other channels of distribution; pricing pressures; the ability to attract and retain qualified employees in all areas of the organization; the cost of labor, merchandise and other costs and expenses; the ability to find suitable locations at acceptable occupancy costs and other terms to support the Company's expansion program; uncertainty in financial markets; 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; reputational risk arising from the acts of third parties; changes to statutory, regulatory and legal requirements; new, or developments in existing, litigation, claims or assessments; changes to, or new, tax laws or interpretation of existing tax laws; changes to, or new, accounting standards including, without limitation, changes to lease accounting standards; and the integration of acquired businesses.  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 

 June 1, 

 May 26, 

2013

2012

Net sales

$

2,612,140

$

2,218,292

Cost of sales

1,579,169

1,331,093

Gross profit

1,032,971

887,199

Selling, general and administrative expenses

709,870

573,801

Operating profit

323,101

313,398

Interest expense, net

(225)

(1,056)

Earnings before provision for income taxes

322,876

312,342

Provision for income taxes 

120,386

105,506

Net earnings

$

202,490

$

206,836

Net earnings per share - Basic

$

0.94

$

0.90

Net earnings per share - Diluted

$

0.93

$

0.89

Weighted average shares outstanding - Basic

215,451

229,086

Weighted average shares outstanding - Diluted

218,335

232,683

 

BED BATH & BEYOND INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, unaudited)

June 1, 

May 26, 

2013

2012

Assets

Current assets:

 Cash and cash equivalents

$

439,850

$

1,075,184

 Short term investment securities

481,804

611,325

 Merchandise inventories

2,540,723

2,202,846

 Other current assets

412,772

310,478

        Total current assets

3,875,149

4,199,833

Long term investment securities

80,868

94,761

Property and equipment, net

1,469,757

1,220,245

Goodwill

486,279

198,749

Other assets

400,595

110,744

$

6,312,648

$

5,824,332

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable

$

977,297

$

866,253

Accrued expenses and other current liabilities

367,116

319,851

Merchandise credit and gift card liabilities

262,945

223,328

Current income taxes payable

126,750

103,042

       Total current liabilities

1,734,108

1,512,474

Deferred rent and other liabilities

493,674

341,073

Income taxes payable

79,815

96,216

       Total liabilities

2,307,597

1,949,763

Total shareholders' equity

4,005,051

3,874,569

$

6,312,648

$

5,824,332

 

BED BATH & BEYOND INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands, unaudited)

 Three Months Ended 

June 1, 

May 26, 

2013

2012

Cash Flows from Operating Activities:

Net earnings

$

202,490

$

206,836

Adjustments to reconcile net earnings to net cash

provided by operating activities:

Depreciation

52,697

43,410

Stock-based compensation

14,803

12,829

Tax benefit from stock-based compensation

10,213

11,445

Deferred income taxes

(17,229)

(10,558)

Other

(302)

(277)

Increase in assets, net of effect of acquisitions:

     Merchandise inventories

(74,509)

(130,956)

     Trading investment securities

(3,911)

(366)

     Other current assets

(24,518)

(8,268)

     Other assets

(3,898)

(2,190)

Increase (decrease) in liabilities, net of effect of acquisitions:

     Accounts payable

73,497

119,886

     Accrued expenses and other current liabilities

(22,018)

(12,346)

     Merchandise credit and gift card liabilities

11,464

13,682

     Income taxes payable

49,151

27,390

     Deferred rent and other liabilities

4,566

1,845

Net cash provided by operating activities

272,496

272,362

Cash Flows from Investing Activities:

Purchase of held-to-maturity investment securities

(369,268)

(281,130)

Redemption of held-to-maturity investment securities

337,500

421,875

Redemption of available-for-sale investment securities

-

6,475

Capital expenditures 

(64,966)

(70,788)

Net cash (used in) provided by investing activities

(96,734)

76,432

Cash Flows from Financing Activities:

Proceeds from exercise of stock options

22,469

26,140

Excess tax benefit from stock-based compensation

1,084

3,360

Repurchase of common stock, including fees

(324,436)

(306,276)

Net cash used in financing activities

(300,883)

(276,776)

Net (decrease) increase in cash and cash equivalents

(125,121)

72,018

Cash and cash equivalents:

Beginning of period 

564,971

1,003,166

End of period

$

439,850

$

1,075,184

 

SOURCE Bed Bath & Beyond Inc.

For further information: Investors, Kenneth C. Frankel, (908) 855-4554 or Eugene A. Castagna, (908) 855-4110

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