- Earnings per Diluted Share of $.66 for Q4; $2.10 for Full Year
- Quarterly Comparable Store Sales Decrease by 0.4%
- Estimates Fiscal 2008 Earnings per Diluted Share Decline of Low Double Digit to Mid Teens Percentage from Fiscal 2007
- Estimates Fiscal First Quarter 2008 Earnings of Approximately $.26 to $.30 per Diluted Share
UNION, N.J., April 9 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $.66 per diluted share ($172.9 million) in the fiscal fourth quarter (thirteen weeks) ended March 1, 2008. Net earnings for the fiscal fourth quarter of 2006 (fourteen weeks) were $.72 per diluted share ($205.8 million), which included an additional week and reflected a non-recurring charge of approximately $.07 per diluted share.
Net sales for the fiscal fourth quarter (thirteen weeks) were approximately $1.933 billion, a decrease of approximately 3.1% from the fiscal fourth quarter (fourteen weeks) of 2006. Sales for the fiscal fourth quarter of 2007 were impacted by there being one less week in the period and by the fact that the week after Thanksgiving fell in the fiscal third quarter compared to falling in the fiscal fourth quarter of 2006. Comparable store sales for the fiscal fourth quarter of 2007 decreased by approximately 0.4% compared with an increase of approximately 5.2% in last year's fiscal fourth quarter. Comparable store sales percentages are calculated based on an equivalent number of weeks for each quarter.
Net earnings for the fiscal year (fifty-two weeks) ended March 1, 2008 were $2.10 per diluted share ($562.8 million), compared with net earnings per diluted share of $2.09 ($594.2 million) a year ago, which was a fifty-three week year and included the aforementioned non-recurring charge of approximately $.07 per diluted share.
Net sales for fiscal 2007 (fifty-two weeks), were approximately $7.049 billion, an increase of approximately 6.5% from the prior fiscal year (fifty-three weeks). Comparable store sales for fiscal 2007 increased by approximately 1.0% compared with an increase of approximately 4.9% in fiscal 2006. Comparable store sales percentages are calculated based on an equivalent number of weeks for each annual period.
During the fiscal fourth quarter of 2007, the Company repurchased approximately 3.6 million shares of its common stock for an aggregate cost of approximately $102 million. This included the completion of the $1 billion share repurchase program authorized in 2006. As of March 1, 2008, the balance remaining of the share repurchase program authorized in September 2007 was approximately $967 million dollars.
Assuming no significant change in the macroeconomic environment, the Company estimates that its fiscal 2008 earnings per diluted share will decline from a low double digit percentage to a mid teens percentage from the $2.10 per diluted share reported for fiscal 2007. This estimate is based, in part, upon the assumption that the comparable store sales for all of fiscal 2008 will be relatively flat to slightly negative. For the fiscal first quarter, the Company estimates earnings to be approximately $.26 to $.30 per diluted share.
As of March 1, 2008, the Company operated a total of 971 stores, including 881 Bed Bath & Beyond stores (22 of which were opened during the fiscal fourth quarter, including the Company's first store in Canada), in 49 states, the District of Columbia, Puerto Rico and Canada. In addition, as of March 1, 2008 Christmas Tree Shops operated 41 stores, buybuy BABY operated 9 stores, and 40 stores operated under the names of Harmon and Harmon Face Values. Consolidated store space as of March 1, 2008 was approximately 30.2 million square feet.
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: 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; general economic conditions; 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) Three Months Ended Twelve Months Ended March 1, March 3, March 1, March 3, 2008 2007 2008 2007 (unaudited) (unaudited) (unaudited) Net sales $1,933,186 $1,994,987 $7,048,942 $6,617,429 Cost of sales 1,134,088 1,132,005 4,123,711 3,782,027 Gross profit 799,098 862,982 2,925,231 2,835,402 Selling, general and administrative expenses 539,656 553,087 2,087,209 1,946,001 Operating profit 259,442 309,895 838,022 889,401 Interest income 5,635 13,248 27,210 43,478 Earnings before provision for income taxes 265,077 323,143 865,232 932,879 Provision for income taxes 92,156 117,301 302,424 338,635 Net earnings $172,921 $205,842 $562,808 $594,244 Net earnings per share - Basic $0.67 $0.74 $2.13 $2.12 Net earnings per share - Diluted $0.66 $0.72 $2.10 $2.09 Weighted average shares outstanding - Basic 258,075 279,079 264,824 280,199 Weighted average shares outstanding - Diluted 260,852 284,431 268,409 284,956 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) March 1, March 3, 2008 2007 (unaudited) Assets Current assets: Cash and cash equivalents $224,084 $213,381 Short term investment securities - 774,881 Merchandise inventories 1,616,981 1,505,800 Other current assets 238,646 204,552 Total current assets 2,079,711 2,698,614 Long term investment securities 326,004 102,692 Property and equipment, net 1,121,906 929,507 Other assets 316,472 228,491 $3,844,093 $3,959,304 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $570,605 $615,156 Accrued expenses and other current liabilities 258,989 245,267 Merchandise credit and gift card liabilities 171,252 143,737 Current income taxes payable 13,266 140,913 Total current liabilities 1,014,112 1,145,073 Deferred rent and other liabilities 192,778 165,080 Income taxes payable 75,375 - Total liabilities 1,282,265 1,310,153 Total shareholders' equity 2,561,828 2,649,151 $3,844,093 $3,959,304 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands) Twelve Months Ended March 1, March 3, 2008 2007 (unaudited) Cash Flows from Operating Activities: Net earnings $562,808 $594,244 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 157,770 132,955 Amortization of bond premium 1,538 3,532 Stock-based compensation 43,755 52,596 Tax benefit from stock-based compensation 2,719 6,691 Deferred income taxes 2,315 (87,225) (Increase) decrease in assets, net of effect of acquisition: Merchandise inventories (96,673) (204,080) Trading investment securities (3,020) (2,958) Other current assets (16,217) (38,241) Other assets 529 (695) (Decrease) increase in liabilities, net of effect of acquisition: Accounts payable (31,764) 75,883 Accrued expenses and other current liabilities 15,774 9,784 Merchandise credit and gift card liabilities 24,430 30,223 Income taxes payable (74,530) 21,575 Deferred rent and other liabilities 25,102 19,348 Net cash provided by operating activities 614,536 613,632 Cash Flows from Investing Activities: Purchase of held-to-maturity investment securities - (124,125) Redemption of held-to-maturity investment securities 494,526 309,818 Purchase of available-for-sale investment securities (1,495,155) (1,443,115) Redemption of available-for-sale investment securities 1,546,430 1,177,250 Capital expenditures (358,210) (317,501) Payment for acquisition, net of cash acquired (85,893) - Net cash provided by (used in) investing activities 101,698 (397,673) Cash Flows from Financing Activities: Proceeds from exercise of stock options 22,672 43,393 Excess tax benefit from stock-based compensation 5,990 14,001 Repurchase of common stock, including fees (734,193) (301,002) Payment of deferred purchase price for acquisition - (6,667) Net cash used in financing activities (705,531) (250,275) Net increase (decrease) in cash and cash equivalents 10,703 (34,316) Cash and cash equivalents: Beginning of period 213,381 247,697 End of period $224,084 $213,381
SOURCE Bed Bath & Beyond Inc.
CONTACT: Ronald Curwin, +1-908-688-0888 Ext. 4550
or Kenneth C. Frankel, +1-908-688-0888 Ext. 4554
or Lisa S. Kaplowitz, +1-908-688-0888 Ext.4083
all of Bed Bath & Beyond Inc.
Web site: http://www.bedbath.com