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Bed Bath & Beyond Inc. Reports Results for Fiscal Year Ended February 28, 2009
Apr 07 2009

- Net Earnings per Diluted Share of $.55 for Q4; $1.64 for Full Year
- Quarterly Comparable Store Sales Decrease by 4.3%
- Quarterly Net Sales Decrease by 0.5%

UNION, N.J., April 7 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $.55 per diluted share ($141.4 million) in the fiscal fourth quarter ended February 28, 2009, compared with net earnings of $.66 per diluted share ($172.9 million) in the same quarter a year ago. Net sales for the fiscal fourth quarter of 2008 were approximately $1.923 billion, a decrease of approximately 0.5% from net sales of approximately $1.933 billion reported in the fiscal fourth quarter of 2007. Comparable store sales in the fiscal fourth quarter of 2008 decreased by approximately 4.3%.

Net earnings for the fiscal year ended February 28, 2009 were $1.64 per diluted share ($425.1 million), compared with net earnings per diluted share of $2.10 ($562.8 million) a year ago. Net sales for fiscal 2008 were approximately $7.208 billion, an increase of approximately 2.3% from the prior fiscal year. Comparable store sales for fiscal 2008 decreased by approximately 2.4%.

As of February 28, 2009, the Company had a total of 1,037 stores, including 930 Bed Bath & Beyond stores (9 of which were opened during the fiscal fourth quarter, including a fourth store in Canada) in 49 states, the District of Columbia, Puerto Rico and Canada, 52 Christmas Tree Shops stores (4 of which were opened during the fiscal fourth quarter), 15 buybuy BABY stores (4 of which were opened in the fiscal fourth quarter), and, after the closing of 1 store, 40 stores under the names of Harmon or Harmon Face Values. Consolidated store space as of February 28, 2009 was approximately 32.1 million square feet. Since the beginning of the fiscal first quarter on March 1, 2009, 1 additional Bed Bath & Beyond store and 1 additional buybuy BABY store have been opened. In addition, the Company is in a joint venture which operates 2 stores in Mexico 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. Through a joint venture, the Company also operates retail stores in Mexico under the name "Home & More." 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, fuel costs, and a declining overall macroeconomic environment; 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 any tax implications relating to the Company's stock option grants. The Company does not undertake any obligation to update its forward-looking statements. The SEC Division of Enforcement has concluded its inquiry with respect to matters arising out of and related to the Company's historical stock option grants and procedures and related matters and has advised the Company that the Division is recommending no enforcement action be taken related to this matter.




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


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

                               February 28,  March 1,  February 28,  March 1,
                                   2009        2008        2009        2008
                                   ----        ----        ----        ----
                               (unaudited) (unaudited) (unaudited)

    Net sales                  $1,923,274  $1,933,186  $7,208,340 $7,048,942
    Cost of sales               1,138,216   1,134,088   4,335,104  4,123,711
                                ---------   ---------   ---------  ---------
        Gross profit              785,058     799,098   2,873,236  2,925,231
    Selling, general and
     administrative expenses      553,776     539,656   2,199,340  2,087,209
                                  -------     -------   ---------  ---------
        Operating profit          231,282     259,442     673,896    838,022
    Interest income                   540       5,635       9,412     27,210
                                      ---       -----       -----     ------
        Earnings before
         provision for income
         taxes                    231,822     265,077     683,308    865,232
    Provision for income taxes     90,444      92,156     258,185    302,424
                                   ------      ------     -------    -------
        Net earnings             $141,378    $172,921    $425,123   $562,808
                                  =======     =======     =======    =======
    Net earnings per share
     - Basic                        $0.55       $0.67       $1.66      $2.13
    Net earnings per share
     - Diluted                      $0.55       $0.66       $1.64      $2.10
    Weighted average shares
     outstanding - Basic          256,130     258,075     256,410    264,824
    Weighted average shares
     outstanding - Diluted        258,062     260,852     258,619    268,409



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


                                               February 28,        March 1,
                                                  2009              2008
                                                  ----              ----
                                               (unaudited)

    Assets

    Current assets:
        Cash and cash equivalents                $668,209          $224,084
        Short term investment securities            2,000                 -
        Merchandise inventories                 1,642,339         1,616,981
        Other current assets                      250,251           238,646
                                                  -------           -------

        Total current assets                    2,562,799         2,079,711
                                                ---------         ---------

    Long term investment securities               221,134           326,004
    Property and equipment, net                 1,148,435         1,121,906
    Other assets                                  336,475           316,472
                                                  -------           -------

                                               $4,268,843        $3,844,093
                                               ==========        ==========

    Liabilities and Shareholders' Equity

    Current liabilities:
        Accounts payable                         $514,734          $570,605
        Accrued expenses and other current
         liabilities                              247,508           258,989
        Merchandise credit and gift card
         liabilities                              165,621           171,252
        Current income taxes payable               25,105            13,266
                                                   ------            ------

        Total current liabilities                 952,968         1,014,112
                                                  -------         ---------

    Deferred rent and other liabilities           227,209           192,778
    Income taxes payable                           88,212            75,375
                                                   ------            ------

        Total liabilities                       1,268,389         1,282,265
                                                ---------         ---------

    Total shareholders' equity                  3,000,454         2,561,828
                                                ---------         ---------

                                               $4,268,843        $3,844,093
                                                =========         =========



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


                                                   Twelve Months Ended
                                                   -------------------

                                             February 28,           March 1,
                                                2009                  2008
                                                ----                  ----
                                             (unaudited)
    Cash Flows from Operating Activities:

    Net earnings                              $425,123             $562,808
    Adjustments to reconcile net earnings
     to net cash provided by operating
     activities:
        Depreciation                           175,601              157,770
        Amortization of bond premium                 -                1,538
        Stock-based compensation                43,708               43,755
        Tax benefit from stock-based
         compensation                           (1,183)               2,719
        Deferred income taxes                  (22,325)               2,315
        Other                                      476                    -
        (Increase) decrease in assets, net of
         effect of acquisition:
            Merchandise inventories            (25,358)             (96,673)
            Trading investment securities          (17)              (3,020)
            Other current assets                (3,065)             (16,217)
            Other assets                          (954)                 529
        (Decrease) increase in liabilities,
         net of effect of acquisition:
            Accounts payable                   (40,863)             (31,764)
            Accrued expenses and other
             current liabilities               (13,301)              15,774
            Merchandise credit and gift card
             liabilities                        (5,631)              24,430
            Income taxes payable                24,676              (74,530)
            Deferred rent and other
             liabilities                        27,083               25,102
                                                ------               ------

        Net cash provided by operating
         activities                            583,970              614,536
                                               -------              -------

    Cash Flows from Investing Activities:

        Redemption of held-to-maturity
          investment securities                      -              494,526
        Purchase of available-for-sale
         investment securities                       -           (1,495,155)
        Redemption of available-for-sale
         investment securities                 107,550            1,546,430
        Capital expenditures                  (215,859)            (358,210)
        Investment in unconsolidated
         joint venture, including fees          (4,786)                   -
        Payment for acquisition, net of
         cash acquired                               -              (85,893)
                                                     -              --------

        Net cash (used in) provided by
         investing activities                 (113,095)             101,698
                                              ---------             -------

      Cash Flows from Financing Activities:

        Proceeds from exercise of stock
         options                                17,650               22,672
        Excess tax benefit from stock-based
         compensation                            3,652                5,990
        Repurchase of common stock,
         including fees                        (48,052)            (734,193)
                                               --------            ---------

        Net cash used in financing
         activities                            (26,750)            (705,531)
                                               --------            ---------

        Net increase in cash and cash
         equivalents                           444,125               10,703

      Cash and cash equivalents:
        Beginning of period                    224,084              213,381
                                               -------              -------
        End of period                         $668,209             $224,084
                                               =======              =======



SOURCE Bed Bath & Beyond Inc.

CONTACT: Kenneth C. Frankel
1-908-855-4554
or
Lisa S. Kaplowitz
1-908-855-4083