- Net Earnings for Quarter of $.30 per Diluted Share
- Quarterly Net Sales Increase by 6.1%
- Quarterly Comparable Store Sales Increase by 0.8%
UNION, N.J., June 25 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $.30 per diluted share ($76.8 million) in the fiscal first quarter ended May 31, 2008, compared with net earnings of $.38 per diluted share ($104.6 million) in the same quarter a year ago. Net sales for the fiscal first quarter of 2008 were approximately $1.648 billion, an increase of approximately 6.1% from net sales of $1.553 billion reported in the fiscal first quarter of 2007. Comparable store sales for the fiscal first quarter of 2008 increased by approximately 0.8%, compared with an increase of approximately 1.6% in last year's fiscal first quarter.
Steven H. Temares, Chief Executive Officer and a Member of the Board of Directors of Bed Bath & Beyond Inc. stated, We continue to take a long-term approach to our business and work to continue to distance ourselves from our competitors by striving to be our customers' first choice for the products we offer domestically, interactively and over the long-term, internationally. Consistent with this, following our successful entry into Canada in December and the announcement of our expansion plans there, we were very pleased to have announced in May the formation of a joint venture with Home & More, S.A. de C.V., a privately-held home products retailer operating two stores in Mexico. We are excited to be entering Mexico with the strong management team of Home & More as our partners.
Also during the fiscal first quarter of 2008, the Company repurchased approximately 0.4 million shares of its common stock for an aggregate cost of approximately $14 million. As of May 31, 2008, the balance remaining of the share repurchase program authorized in September 2007 was approximately $953 million.
As of May 31, 2008, the Company operated a total of 981 stores, including 890 Bed Bath & Beyond stores (9 of which were opened during the fiscal first quarter), in 49 states, the District of Columbia, Puerto Rico and Canada. In addition, as of May 31, 2008, Christmas Tree Shops operated 41 stores, buybuy BABY operated 10 stores (1 of which was opened during the fiscal first quarter) and 40 stores operated under the names of Harmon and Harmon Face Values. Consolidated store space as of May 31, 2008 was approximately 30.4 million square feet. Since the beginning of the fiscal second quarter on June 1, 2008, 2 additional Bed Bath & Beyond stores have opened.
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. The Company sells a wide assortment of merchandise principally including domestics merchandise and home furnishings as well as 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 and fuel costs; changes in the retailing environment and 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 the outcome of the informal inquiry commenced by the SEC, the possibility that the SEC may not agree with all of the special committee's findings and recommendations and may require additional or different remediation, any other proceedings which may be brought against the Company by the SEC or other governmental agencies, any tax implications relating to the Company's stock option grants, the outcome of a shareholder derivative action filed against certain of the Company's officers and directors and related matters, and the possibility of other private litigation relating to such stock option grants and related matters. 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 31, June 2, 2008 2007 Net sales $1,648,491 $1,553,293 Cost of sales 992,491 907,184 Gross profit 656,000 646,109 Selling, general and administrative expenses 537,181 491,718 Operating profit 118,819 154,391 Interest income 4,530 9,890 Earnings before provision for income taxes 123,349 164,281 Provision for income taxes 46,572 59,634 Net earnings $76,777 $104,647 Net earnings per share - Basic $0.30 $0.38 Net earnings per share - Diluted $0.30 $0.38 Weighted average shares outstanding - Basic 256,634 273,564 Weighted average shares outstanding - Diluted 259,263 278,249 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, unaudited) May 31, June 2, 2008 2007 Assets Current assets: Cash and cash equivalents $240,255 $183,131 Short term investment securities 15,000 512,022 Merchandise inventories 1,726,148 1,558,478 Other current assets 259,917 274,795 Total current assets 2,241,320 2,528,426 Long term investment securities 307,734 74,937 Property and equipment, net 1,112,116 954,620 Other assets 325,004 310,657 $3,986,174 $3,868,640 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $597,011 $608,982 Accrued expenses and other current liabilities 256,083 244,612 Merchandise credit and gift card liabilities 172,816 151,547 Current income taxes payable 33,235 67,866 Total current liabilities 1,059,145 1,073,007 Deferred rent and other liabilities 198,503 170,274 Income taxes payable 74,753 124,465 Total liabilities 1,332,401 1,367,746 Total shareholders' equity 2,653,773 2,500,894 $3,986,174 $3,868,640 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands, unaudited) Three Months Ended May 31, June 2, 2008 2007 Cash Flows from Operating Activities: Net earnings $76,777 $104,647 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 43,619 37,339 Amortization of bond premium - 671 Stock-based compensation 10,377 10,022 Tax benefit from stock-based compensation 2,672 545 Deferred income taxes (6,736) (15,551) (Increase) decrease in assets, net of effect of acquisition: Merchandise inventories (109,167) (38,169) Trading investment securities (1,555) (1,418) Other current assets (17,803) (26,783) Other assets (626) 13 Increase (decrease) in liabilities, net of effect of acquisition: Accounts payable 44,545 12,180 Accrued expenses and other current liabilities (2,868) (2,736) Merchandise credit and gift card liabilities 1,564 4,270 Income taxes payable 19,347 28,913 Deferred rent and other liabilities 5,654 3,674 Net cash provided by operating activities 65,800 117,617 Cash Flows from Investing Activities: Redemption of held-to-maturity investment securities - 94,666 Purchase of available-for-sale investment securities - (315,780) Redemption of available-for-sale investment securities 4,825 512,475 Capital expenditures (51,673) (76,523) Investment in unconsolidated joint venture, including fees (4,659) - Payment for acquisition, net of cash acquired - (85,893) Net cash (used in) provided by investing activities (51,507) 128,945 Cash Flows from Financing Activities: Proceeds from exercise of stock options 11,214 9,720 Excess tax benefit from stock-based compensation 4,315 2,683 Repurchase of common stock, including fees (13,651) (289,215) Net cash provided by (used in) financing activities 1,878 (276,812) Net increase (decrease) in cash and cash equivalents 16,171 (30,250) Cash and cash equivalents: Beginning of period 224,084 213,381 End of period $240,255 $183,131
SOURCE Bed Bath & Beyond Inc.
Kenneth C. Frankel
Web site: http://www.bedbath.com