Bed Bath & Beyond Inc. Reports Results for Fiscal Third Quarter

- Net Earnings per Diluted Share Increase by 71% to $.58

- Net Sales Increase by 10.8%

- Comparable Store Sales Increase by 7.3%

- Estimates Net Earnings per Diluted Share of $.67 to $.71 for Fourth Quarter Ending February 27, 2010

Jan 06, 2010, 16:15 ET from Bed Bath & Beyond Inc.

UNION, N.J., Jan. 6 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. (Nasdaq: BBBY) today reported net earnings of $.58 per diluted share ($151.3 million) in the fiscal third quarter ended November 28, 2009, an increase of approximately 71% versus net earnings of $.34 per diluted share ($87.7 million) in the same quarter a year ago. Net sales for the fiscal third quarter of 2009 were approximately $1.975 billion, an increase of approximately 10.8% from net sales of approximately $1.783 billion reported in the fiscal third quarter of 2008. Comparable store sales in the fiscal third quarter of 2009 increased by approximately 7.3%, compared with a decrease of approximately 5.6% in last year's fiscal third quarter.

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 Face Values 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.



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http://www.bedbathandbeyond.com