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Bed Bath & Beyond Inc. Reports Results for Fiscal Year Ended March 1, 2008
Apr 09 2008

- 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