News Release

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Bed Bath & Beyond Inc. Reports Net Earnings for Fiscal First Quarter
Jun 25 2008

- 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.

                     Consolidated Statements of Earnings
                    (in thousands, except per share data)

                                                     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

                         Consolidated Balance Sheets
                          (in thousands, unaudited)

                                                    May 31,         June 2,
                                                     2008            2007

    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

                    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.

Ronald Curwin
Kenneth C. Frankel
Web site: