- Net Earnings per Diluted Share Increase 35% to $.70
- Quarterly Comparable Store Sales Increase by 7.4%
- Quarterly Net Sales Increase by 11.6%
- Full Year Net Earnings per Diluted Share Modeled to Increase Approximately 20%; Previously Modeled at Approximately 15%
UNION, N.J., Sept 22, 2010 /PRNewswire via COMTEX/ --
Bed Bath & Beyond Inc. today reported net earnings of $.70 per diluted share ($181.8 million) in the fiscal second quarter ended August 28, 2010, an increase of approximately 35% versus net earnings of $.52 per diluted share ($135.5 million) in the same quarter a year ago. Net sales for the fiscal second quarter of 2010 were approximately $2.137 billion, an increase of approximately 11.6% from net sales of approximately $1.915 billion reported in the fiscal second quarter of 2009. Comparable store sales in the fiscal second quarter of 2010 increased by approximately 7.4%, compared with a decrease of approximately 0.6% in last year's fiscal second quarter.
Also during the fiscal second quarter of 2010, the Company repurchased approximately $193 million of its common stock representing approximately 4.9 million shares.
For the fiscal first half ended August 28, 2010, the Company reported net earnings of $1.22 per diluted share ($319.3 million), an increase of approximately 42% over net earnings of $.86 per diluted share ($222.7 million) in the corresponding period a year ago. Net sales for the fiscal first half of 2010 were approximately $4.060 billion, an increase of approximately 12.5% from net sales of approximately $3.609 billion in the corresponding period a year ago. Comparable store sales for the fiscal first half of 2010 increased by approximately 7.9%, compared with a decrease of approximately 1.1% in last year's fiscal first half.
For the fiscal third quarter of 2010, the Company is modeling net earnings per diluted share to be approximately $.61 to $.65. For fiscal 2010, the Company is now modeling net earnings per diluted share to increase by approximately 20%, up from the previous model of approximately 15%.
As of August 28, 2010, the Company had a total of 1,111 stores, including 972 Bed Bath & Beyond stores in 50 states, the District of Columbia, Puerto Rico and Canada, 61 Christmas Tree Shops stores, 33 buybuy BABY stores and 45 stores under the names of Harmon or Harmon Face Values. During the fiscal second quarter, the Company opened five Bed Bath & Beyond stores, including the first store in its 50th state, Hawaii, and two buybuy BABY stores. Consolidated store space as of August 28, 2010 was approximately 34.1 million square feet. Since the beginning of the third quarter of fiscal 2010 on August 29, 2010, one additional Bed Bath & Beyond store, two buybuy BABY stores and one Christmas Tree Shops store have 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, approximate, estimate, assume, continue, model, 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 Six Months
Ended Ended
------------ ----------
August August August August
28, 29, 28, 29,
2010 2009 2010 2009
---- ---- ---- ----
Net sales $2,136,730 $1,914,909 $4,059,781 $3,609,249
Cost of sales 1,261,812 1,141,516 2,409,827 2,169,038
--------- --------- --------- ---------
Gross profit 874,918 773,393 1,649,954 1,440,211
Selling,
general and
administrative
expenses 578,016 551,362 1,127,658 1,075,876
------- ------- --------- ---------
Operating
profit 296,902 222,031 522,296 364,335
Interest
income 327 1,476 843 3,243
--- ----- --- -----
Earnings
before
provision
for income
taxes 297,229 223,507 523,139 367,578
Provision for
income taxes 115,474 87,976 203,831 144,875
------- ------ ------- -------
Net earnings $181,755 $135,531 $319,308 $222,703
======== ======== ======== ========
Net earnings
per share -
Basic $0.71 $0.53 $1.24 $0.87
Net earnings
per share -
Diluted $0.70 $0.52 $1.22 $0.86
Weighted
average
shares
outstanding
-Basic 257,013 257,814 258,207 257,378
Weighted
average
shares
outstanding
-Diluted 259,928 259,940 261,783 259,352
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
August 28, August 29,
2010 2009
---- ----
Assets
Current assets:
Cash and cash
equivalents $1,040,504 $1,035,601
Short term
investment
securities 602,223 43,125
Merchandise
inventories 1,903,096 1,755,377
Other current
assets 306,571 289,101
------- -------
Total current
assets 3,852,394 3,123,204
--------- ---------
Long term
investment
securities 132,242 157,193
Property and
equipment, net 1,105,297 1,111,971
Other assets 350,079 343,070
------- -------
$5,440,012 $4,735,438
========== ==========
Liabilities and
Shareholders'
Equity
Current
liabilities:
Accounts payable $771,752 $682,936
Accrued expenses
and other
current
liabilities 306,316 264,066
Merchandise
credit and gift
card
liabilities 179,119 163,338
Current income
taxes payable 25,244 29,159
------ ------
Total current
liabilities 1,282,431 1,139,499
--------- ---------
Deferred rent
and other
liabilities 262,198 236,107
Income taxes
payable 110,642 98,928
------- ------
Total
liabilities 1,655,271 1,474,534
--------- ---------
Total
shareholders'
equity 3,784,741 3,260,904
--------- ---------
$5,440,012 $4,735,438
========== ==========
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended
----------------
August
August 28, 29,
2010 2009
---- ----
Cash Flows from
Operating
Activities:
Net earnings $319,308 $222,703
Adjustments to
reconcile net
earnings to net cash
provided by operating
activities:
Depreciation 89,882 89,746
Stock-based
compensation 22,636 22,137
Tax benefit from
stock-based
compensation (2,660) (964)
Deferred income taxes (11,281) (13,943)
Other (694) (12)
(Increase) decrease
in assets:
Merchandise
inventories (143,393) (113,038)
Trading investment
securities (1,859) (4,071)
Other current assets (29,525) (32,756)
Other assets (2,562) 302
Increase (decrease)
in liabilities:
Accounts payable 168,903 183,176
Accrued expenses and
other current
liabilities 24,322 19,123
Merchandise credit
and gift card
liabilities 6,315 (2,283)
Income taxes payable (51,370) 11,318
Deferred rent and
other liabilities 16,080 10,968
------ ------
Net cash provided by
operating activities 404,102 392,406
------- -------
Cash Flows from
Investing
Activities:
Purchase of held-to-
maturity investment
securities (780,750) -
Redemption of held-
to-maturity
investment
securities 555,020 -
Redemption of
available-for-sale
investment
securities 14,025 27,245
Redemption of trading
investment
securities 42,825 -
Capital expenditures (83,574) (67,631)
------- -------
Net cash used in
investing activities (252,454) (40,386)
-------- -------
Cash Flows from
Financing
Activities:
Proceeds from
exercise of stock
options 70,054 45,663
Excess tax benefit
from stock-based
compensation 1,038 2,778
Repurchase of common
stock, including
fees (278,336) (33,069)
-------- -------
Net cash (used in)
provided by
financing activities (207,244) 15,372
-------- ------
Net (decrease)
increase in cash and
cash equivalents (55,596) 367,392
Cash and cash
equivalents:
Beginning of period 1,096,100 668,209
--------- -------
End of period $1,040,504 $1,035,601
========== ==========
SOURCE Bed Bath & Beyond Inc.