For the fiscal nine months ended November 28, 2009, the Company reported net earnings of $1.44 per diluted share ($374.0 million), an increase of approximately 31% over net earnings of $1.10 per diluted share ($283.7 million) in the corresponding period a year ago. Net sales for the fiscal nine months of 2009 were approximately $5.585 billion, an increase of approximately 5.7% from net sales of approximately $5.285 billion in the corresponding period a year ago. Comparable store sales for the fiscal nine months of 2009 increased by approximately 1.7%, compared with a decrease of approximately 1.7% in last year's fiscal nine months.
The Company now estimates that it will earn approximately $.67 to $.71 per diluted share for the fiscal fourth quarter and approximately $2.11 to $2.15 per diluted share for all of fiscal 2009.
As of November 28, 2009, the Company had a total of 1,083 stores, including 958 Bed Bath &Beyond stores in 49 states, the District of Columbia, Puerto Rico and Canada, 57 Christmas Tree Shops stores, 26 buybuy BABY stores, and 42 stores under the names of Harmon or Harmon Face Values. During the fiscal third quarter, the Company opened 16 Bed Bath & Beyond stores, seven buybuy BABY stores, four Christmas Tree Shops stores and one Harmon FaceValues store and closed one Bed Bath & Beyond store. Consolidated store space as of November 28, 2009 was approximately 33.4 million square feet. Since the beginning of the fiscal fourth quarter on November 29, 2009, three additional Bed Bath & Beyond stores and one Harmon Face Values store have been opened and one Bed Bath & Beyond store has been closed. In addition, through a joint venture, the Company 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. Through a joint venture, the Company also 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 Nine Months Ended
------------------ -----------------
November November November November
28, 29, 28, 29,
2009 2008 2009 2008
---- ---- ---- ----
Net sales $1,975,465 $1,782,683 $5,584,714 $5,285,066
Cost of sales 1,163,053 1,089,826 3,332,091 3,196,888
--------- --------- --------- ---------
Gross profit 812,412 692,857 2,252,623 2,088,178
Selling,
general and
administrative
expenses 566,801 556,483 1,642,677 1,645,564
------- ------- --------- ---------
Operating
profit 245,611 136,374 609,946 442,614
Interest income 737 1,396 3,980 8,872
--- ----- ----- -----
Earnings before
provision for
income taxes 246,348 137,770 613,926 451,486
Provision for
income taxes 95,060 50,070 239,935 167,741
------ ------ ------- -------
Net earnings $151,288 $87,700 $373,991 $283,745
======== ======= ======== ========
Net earnings
per share -
Basic $0.59 $0.34 $1.45 $1.11
Net earnings
per share -
Diluted $0.58 $0.34 $1.44 $1.10
Weighted
average shares
outstanding -
Basic 258,074 256,150 257,610 256,503
Weighted
average shares
outstanding -
Diluted 260,913 258,174 259,872 258,805
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
November 28, November 29,
2009 2008
---- ----
Assets
Current assets:
Cash and cash equivalents $854,641 $233,356
Short term investment securities 162,934 4,000
Merchandise inventories 1,954,995 1,920,481
Other current assets 353,419 332,321
------- -------
Total current assets 3,325,989 2,490,158
--------- ---------
Long term investment securities 152,248 230,910
Property and equipment, net 1,118,272 1,134,802
Other assets 331,257 339,520
------- -------
$4,927,766 $4,195,390
========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $718,921 $613,217
Accrued expenses and other current
liabilities 281,494 267,882
Merchandise credit and gift card
liabilities 162,882 165,837
Current income taxes payable 24,216 7,753
------ -----
Total current liabilities 1,187,513 1,054,689
--------- ---------
Deferred rent and other liabilities 238,660 206,465
Income taxes payable 103,160 80,637
------- ------
Total liabilities 1,529,333 1,341,791
--------- ---------
Total shareholders' equity 3,398,433 2,853,599
--------- ---------
$4,927,766 $4,195,390
========== ==========
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Nine Months Ended
-----------------
November 28, November 29,
2009 2008
---- ----
Cash Flows from Operating
Activities:
Net earnings $373,991 $283,745
Adjustments to reconcile net
earnings to net cash
provided by operating activities:
Depreciation 137,034 130,744
Stock-based compensation 32,809 32,352
Tax benefit from stock-based
compensation (1,805) (890)
Deferred income taxes (16,206) (23,709)
Other (147) 311
(Increase) decrease in assets:
Merchandise inventories (312,656) (303,500)
Trading investment securities (4,998) (62)
Other current assets (83,633) (69,322)
Other assets 377 (869)
Increase (decrease) in liabilities:
Accounts payable 206,883 62,914
Accrued expenses and other current
liabilities 37,363 7,462
Merchandise credit and gift card
liabilities (2,739) (5,415)
Income taxes payable 10,607 (20,208)
Deferred rent and other liabilities 15,216 13,476
------ ------
Net cash provided by operating
activities 392,096 107,029
------- -------
Cash Flows from Investing
Activities:
Redemption of available-for-sale
investment securities 33,320 95,250
Purchase of held-to-maturity
investment securities (119,950) -
Capital expenditures (108,619) (162,986)
Investment in unconsolidated joint
venture, including fees - (4,782)
--- ------
Net cash used in investing
activities (195,249) (72,518)
-------- -------
Cash Flows from Financing
Activities:
Proceeds from exercise of stock
options 53,190 16,172
Excess tax benefit from stock-
based compensation 3,028 3,622
Repurchase of common stock,
including fees (66,633) (45,033)
------- -------
Net cash used in financing
activities (10,415) (25,239)
------- -------
Net increase in cash and cash
equivalents 186,432 9,272
Cash and cash equivalents:
Beginning of period 668,209 224,084
------- -------
End of period $854,641 $233,356
======== ========
SOURCE Bed Bath & Beyond Inc.