Exhibit 99.2
FOR IMMEDIATE RELEASE
BED BATH & BEYOND INC. ANNOUNCES THIRD QUARTER RESULTS
•Net Earnings Increase 33.8% to $100.5 million ($.33 per share)
•Net Sales Increase by 25.5%
•Comparable Store Sales Grow by 6.4%
UNION, New Jersey, December 17, 2003 -—Bed Bath & Beyond Inc. today reported net earnings of $100.5 million ($.33 per share) in the fiscal third quarter ended November 29, 2003, an increase of approximately 33.8% from the $75.1 million ($.25 per share) earned in the fiscal third quarter of 2002. Net sales for the fiscal third quarter of 2003 were $1.175 billion, an increase of approximately 25.5% from net sales of $936.0 million in the fiscal third quarter of 2002. Comparable store sales in the fiscal third quarter of 2003 grew by approximately 6.4%.
For the fiscal nine months ended November 29, 2003, net earnings increased 29.6% to $255.2 million ($.84 per share) from $196.9 million ($.65 per share) earned in the comparable period of the prior year. Net sales for the fiscal nine months of 2003 rose 21.6% to $3.180 billion from $2.616 billion in the corresponding period of the prior year. Comparable store sales for the fiscal nine months of 2003 increased by approximately 5.6%.
As of November 29, 2003, there were 569Bed Bath & Beyondstores operating in 44 states and Puerto Rico, including 55 newBed Bath & Beyondstores opened during the fiscal third quarter. Total store space of theBed Bath & Beyondstores at the end of the fiscal third quarter was approximately 19,196,000 square feet, representing an increase of approximately 1,941,000 square feet (11.2%) since the end of fiscal 2002. During the first nine months of fiscal 2003, the Company opened 79Bed Bath & Beyondstores and expects to open approximately 7 additionalBed Bath & Beyondstores before the end of its fiscal year on February 28, 2004. Harmon Stores, Inc. also opened one new store during the fiscal third quarter.
The additional openings will bring to approximately 86 the total number of newBed Bath & Beyondstores opened in fiscal 2003 and to approximately 576 the number ofBed Bath & Beyondstores expected to be in operation at fiscal year-end. During fiscal 2002, the Company opened 95 newBed Bath & Beyondstores, several of which had been expected to open in fiscal 2003.
The accompanying consolidated financial information includes the accounts of Christmas Tree Shops, Inc. since June 19, 2003 (date of acquisition). As of November 29, 2003, Christmas Tree Shops, Inc. operated 24 stores in 6 states. Also as of that date, Harmon Stores, Inc. operated 30 stores in 3 states.
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Bed Bath & Beyond Inc.is a nationwide chain of retail stores. The Company’sBed Bath & Beyondstores sell better quality domestics merchandise and home furnishings. The Company’s Christmas Tree Shops and Harmon Stores sell giftware and household items and health and beauty care items, respectively. Shares ofBed Bath & Beyond Inc.are traded on NASDAQ under the symbol “BBBY” and are included in the Standard & Poor’s 500 Index, the NASDAQ-100 Index and the Forbes 500.
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, changes in the retailing environment and consumer 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 ability to find suitable locations at reasonable occupancy costs to support the Company’s expansion program; and the cost of labor, merchandise and other costs and expenses. The Company does not undertake any obligation to update its forward-looking statements.
INVESTOR CONTACTS (at 908/688-0888):
| Ronald Curwin | Kenneth C. Frankel | Paula J. Marbach | ||
| Chief Financial Officer | Director of Financial | Investor Relations | ||
| and Treasurer | Planning | Ext. 4552 | ||
| Ext. 4550 | Ext. 4554 | Fax: 908-810-8813 |
(Tables Follow)
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| November 29, | November 30, | November 29, | November 30, | ||||||||||||||
| 2003 | 2002 | 2003 | 2002 | ||||||||||||||
| Net sales | $ | 1,174,740 | $ | 936,030 | $ | 3,180,053 | $ | 2,615,872 | |||||||||
| Cost of sales | 687,753 | 549,806 | 1,866,741 | 1,540,951 | |||||||||||||
| Gross profit | 486,987 | 386,224 | 1,313,312 | 1,074,921 | |||||||||||||
| Selling, general and administrative expenses | 325,528 | 266,996 | 905,536 | 763,305 | |||||||||||||
| Operating profit | 161,459 | 119,228 | 407,776 | 311,616 | |||||||||||||
| Interest income | 1,965 | 2,905 | 7,219 | 8,497 | |||||||||||||
| Earnings before provision for income taxes | 163,424 | 122,133 | 414,995 | 320,113 | |||||||||||||
| Provision for income taxes | 62,918 | 47,021 | 159,773 | 123,243 | |||||||||||||
| Net earnings | $ | 100,506 | $ | 75,112 | $ | 255,222 | $ | 196,870 | |||||||||
| �� | |||||||||||||||||
| Net earnings per share — Basic | $ | 0.34 | $ | 0.26 | $ | 0.86 | $ | 0.67 | |||||||||
| Net earnings per share — Diluted | $ | 0.33 | $ | 0.25 | $ | 0.84 | $ | 0.65 | |||||||||
| Weighted average shares outstanding — Basic | 297,279 | 293,307 | 296,018 | 292,491 | |||||||||||||
| Weighted average shares outstanding — Diluted | 305,156 | 301,345 | 304,122 | 300,918 | |||||||||||||
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
| November 29, | November 30, | |||||||||
| 2003 | 2002 | |||||||||
Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 620,331 | $ | 293,031 | ||||||
| Short term investment securities | 84,059 | 150,000 | ||||||||
| Merchandise inventories | 1,167,808 | 989,074 | ||||||||
| Other current assets | 94,825 | 73,621 | ||||||||
| Total current assets | 1,967,023 | 1,505,726 | ||||||||
| Long term investment securities | 133,876 | 149,180 | ||||||||
| Property and equipment, net | 506,064 | 428,876 | ||||||||
| Goodwill | 145,932 | 16,771 | ||||||||
| Other assets | 26,166 | 6,984 | ||||||||
| $ | 2,779,061 | $ | 2,107,537 | |||||||
Liabilities and Shareholders’ Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 529,440 | $ | 427,324 | ||||||
| Accrued expenses and other current liabilities | 340,047 | 249,393 | ||||||||
| Income taxes payable | 27,315 | 42,329 | ||||||||
| Total current liabilities | 896,802 | 719,046 | ||||||||
| Deferred rent and other liabilities | 82,316 | 48,999 | ||||||||
| Total liabilities | 979,118 | 768,045 | ||||||||
| Total shareholders’ equity | 1,799,943 | 1,339,492 | ||||||||
| $ | 2,779,061 | $ | 2,107,537 | |||||||
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
| Nine Months Ended | |||||||||||
| November 29, | November 30, | ||||||||||
| 2003 | 2002 | ||||||||||
| Cash Flows from Operating Activities: | |||||||||||
| Net earnings | $ | 255,222 | $ | 196,870 | |||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 60,686 | 57,066 | |||||||||
| Amortization of bond premium | 1,079 | — | |||||||||
| Tax benefit from exercise of stock options | 43,691 | 26,945 | |||||||||
| Deferred income taxes | 2,575 | (9,533 | ) | ||||||||
| (Increase) decrease in assets, net of effects of acquisitions: | |||||||||||
| Merchandise inventories | (182,532 | ) | (219,192 | ) | |||||||
| Other current assets | (24,799 | ) | (22,041 | ) | |||||||
| Other assets | (6,998 | ) | 195 | ||||||||
| Increase (decrease) in liabilities, net of effects of acquisitions: | |||||||||||
| Accounts payable | 150,131 | 150,503 | |||||||||
| Accrued expenses and other current liabilities | 33,789 | 54,351 | |||||||||
| Income taxes payable | (44,523 | ) | (8,859 | ) | |||||||
| Deferred rent and other liabilities | 12,555 | 9,735 | |||||||||
| Net cash provided by operating activities | 300,876 | 236,040 | |||||||||
| Cash Flows from Investing Activities: | |||||||||||
| Purchase of investment securities | (222,224 | ) | (317,271 | ) | |||||||
| Redemption of investment securities | 252,770 | 70,000 | |||||||||
| Payment for acquisitions, net of cash acquired | (175,487 | ) | (24,097 | ) | |||||||
| Capital expenditures | (79,168 | ) | (122,464 | ) | |||||||
| Net cash used in investing activities | (224,109 | ) | (393,832 | ) | |||||||
| Cash Flows from Financing Activities: | |||||||||||
| Proceeds from exercise of stock options | 49,109 | 21,327 | |||||||||
| Prepayment of acquired debt | (21,215 | ) | — | ||||||||
| Net cash provided by financing activities | 27,894 | 21,327 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 104,661 | (136,465 | ) | ||||||||
| Cash and cash equivalents: | |||||||||||
| Beginning of period | 515,670 | 429,496 | |||||||||
| End of period | $ | 620,331 | $ | 293,031 | |||||||