- Net Earnings per Diluted Share of $.52
- Quarterly Comparable Store Sales Increase by 8.4%
- Quarterly Net Sales Increase by 13.5%
UNION, N.J., June 23, 2010 /PRNewswire via COMTEX/ --Bed Bath & Beyond Inc. (Nasdaq: BBBY) today reported net earnings of $.52 per diluted share ($137.6 million) in the fiscal first quarter ended May 29, 2010, an increase of approximately 53% versus net earnings of $.34 per diluted share ($87.2 million) in the same quarter a year ago. Net sales for the fiscal first quarter of 2010 were approximately $1.923 billion, an increase of approximately 13.5% from net sales of approximately $1.694 billion reported in the fiscal first quarter of 2009. Comparable store sales in the fiscal first quarter of 2010 increased by approximately 8.4%, compared with a decrease of approximately 1.6% in last year's fiscal first quarter.
For the fiscal second quarter of 2010, the Company is modeling net earnings per diluted share to be approximately $.59 to $.63. For fiscal 2010, the Company is modeling net earnings per diluted share to increase by approximately 15%.
As of May 29, 2010, the Company had a total of 1,104 stores, including 967 Bed Bath & Beyond stores in 49 states, the District of Columbia, Puerto Rico and Canada, 61 Christmas Tree Shops stores, 31 buybuy BABY stores and 45 stores under the names of Harmon or Harmon Face Values. During the fiscal first quarter, the Company opened two Bed Bath & Beyond stores and two buybuy BABY stores. Consolidated store space as of May 29, 2010 was approximately 33.9 million square feet. Since the beginning of the second quarter of fiscal 2010 on May 30, 2010, one additional Bed Bath & Beyond store has been opened. In addition, the Company is a partner in a joint venture which operates two stores in the Mexico City market 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. In addition, the Company is a partner in a joint venture which operates retail stores in Mexico under the name "Home & More." The Company sells a wide assortment of domestics merchandise and home furnishings, which include 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, 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; 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.
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
Three Months Ended
------------------
May 29, May 30,
2010 2009
---- ----
Net sales $1,923,051 $1,694,340
Cost of sales 1,148,015 1,027,522
--------- ---------
Gross profit 775,036 666,818
Selling, general and administrative
expenses 549,642 524,514
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Operating profit 225,394 142,304
Interest income 516 1,767
--- -----
Earnings before provision for income
taxes 225,910 144,071
Provision for income taxes 88,357 56,899
------ ------
Net earnings $137,553 $87,172
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Net earnings per share - Basic $0.53 $0.34
Net earnings per share - Diluted $0.52 $0.34
Weighted average shares outstanding -
Basic 259,400 256,942
Weighted average shares outstanding -
Diluted 263,638 258,764
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
May 29, May 30,
2010 2009
---- ----
Assets
Current assets:
Cash and cash equivalents $1,083,985 $855,434
Short term investment securities 560,174 2,000
Merchandise inventories 1,846,140 1,703,819
Other current assets 292,054 272,681
------- -------
Total current assets 3,782,353 2,833,934
--------- ---------
Long term investment securities 133,835 216,196
Property and equipment, net 1,103,367 1,120,393
Other assets 341,471 335,531
------- -------
$5,361,026 $4,506,054
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $678,685 $603,402
Accrued expenses and other current
liabilities 271,193 247,256
Merchandise credit and gift card
liabilities 175,404 160,629
Current income taxes payable 89,400 55,361
------ ------
Total current liabilities 1,214,682 1,066,648
--------- ---------
Deferred rent and other liabilities 257,312 232,790
Income taxes payable 105,813 96,264
------- ------
Total liabilities 1,577,807 1,395,702
--------- ---------
Total shareholders' equity 3,783,219 3,110,352
--------- ---------
$5,361,026 $4,506,054
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BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months Ended
------------------
May 29, May 30,
2010 2009
---- ----
Cash Flows from Operating Activities:
Net earnings $137,553 $87,172
Adjustments to reconcile net earnings to
net cash
provided by operating activities:
Depreciation 45,013 44,779
Stock-based compensation 11,836 11,010
Tax benefit from stock-based compensation (2,679) (55)
Deferred income taxes (1,303) (5,081)
Other (304) 54
(Increase) decrease in assets:
Merchandise inventories (86,437) (61,480)
Trading investment securities (1,139) (2,439)
Other current assets (19,122) (16,998)
Other assets 128 170
Increase (decrease) in liabilities:
Accounts payable 77,767 98,819
Accrued expenses and other current
liabilities (10,681) 2,220
Merchandise credit and gift card
liabilities 2,600 (4,992)
Income taxes payable 7,957 34,856
Deferred rent and other liabilities 11,094 6,274
------ -----
Net cash provided by operating activities 172,283 194,309
------- -------
Cash Flows from Investing Activities:
Purchase of held-to-maturity investment
securities (377,860) -
Redemption of held-to-maturity
investment securities 217,520 -
Redemption of available-for-sale
investment securities 30,850 7,600
Capital expenditures (39,032) (26,588)
------- -------
Net cash used in investing activities (168,522) (18,988)
-------- -------
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 68,364 23,303
Excess tax benefit from stock-based
compensation 962 1,712
Repurchase of common stock, including fees (85,202) (13,111)
------- -------
Net cash (used in) provided by financing
activities (15,876) 11,904
------- ------
Net (decrease) increase in cash and cash
equivalents (12,115) 187,225
Cash and cash equivalents:
Beginning of period 1,096,100 668,209
--------- -------
End of period $1,083,985 $855,434
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SOURCE Bed Bath & Beyond Inc.