Exhibit 99.1
BED BATH & BEYOND INC. REPORTS RESULTS FOR
FISCAL FIRST QUARTER
· | | Net Earnings per Diluted Share of $.52 |
· | | Quarterly Comparable Store Sales Increase by 8.4% |
· | | Quarterly Net Sales Increase by 13.5% |
UNION, New Jersey, June 23, 2010 — Bed Bath & Beyond Inc. today reported net earnings of $.52 per diluted share ($137.6 million) in the fiscal first quarter ended May 29, 2010, an increase of approximately 53% versus net earnings of $.34 per diluted share ($87.2 million) in the same quarter a year ago. Net sales for the fiscal first quarter of 2010 were approximately $1.923 billion, an increase of approximately 13.5% from net sales of approximately $1.694 billion reported in the fiscal first quarter of 2009. Comparable store sales in the fiscal first quarter of 2010 increased by approximately 8.4%, compared with a decrease of approximately 1.6% in last year’s fiscal first quarter.
For the fiscal second quarter of 2010, the Company is modeling net earnings per diluted share to be approximately $.59 to $.63. For fiscal 2010, the Company is modeling net earnings per diluted share to increase by approximately 15%.
As of May 29, 2010, the Company had a total of 1,104 stores, including 967 Bed Bath & Beyond stores in 49 states, the District of Columbia, Puerto Rico and Canada, 61 Christmas Tree Shops stores, 31 buybuy BABY stores and 45 stores under the names of Harmon or Harmon Face Values. During the fiscal first quarter, the Company opened two Bed Bath & Beyond stores and two buybuy BABY stores. Consolidated store space as of May 29, 2010 was approximately 33.9 million square feet. Since the beginning of the second quarter of fiscal 2010 on May 30, 2010, one additional Bed Bath & Beyond store has 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, 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.
INVESTOR CONTACTS:
Kenneth C. Frankel | (908) 855-4554 |
Eugene A. Castagna | (908) 855-4110 |
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
| | Three Months Ended | |
| | May 29, | | May 30, | |
| | 2010 | | 2009 | |
| | | | | |
Net sales | | $ | 1,923,051 | | $ | 1,694,340 | |
| | | | | |
Cost of sales | | 1,148,015 | | 1,027,522 | |
| | | | | |
Gross profit | | 775,036 | | 666,818 | |
| | | | | |
Selling, general and administrative expenses | | 549,642 | | 524,514 | |
| | | | | |
Operating profit | | 225,394 | | 142,304 | |
| | | | | |
Interest income | | 516 | | 1,767 | |
| | | | | |
Earnings before provision for income taxes | | 225,910 | | 144,071 | |
| | | | | |
Provision for income taxes | | 88,357 | | 56,899 | |
| | | | | |
Net earnings | | $ | 137,553 | | $ | 87,172 | |
| | | | | |
Net earnings per share - Basic | | $ | 0.53 | | $ | 0.34 | |
Net earnings per share - Diluted | | $ | 0.52 | | $ | 0.34 | |
| | | | | |
Weighted average shares outstanding - Basic | | 259,400 | | 256,942 | |
Weighted average shares outstanding - Diluted | | 263,638 | | 258,764 | |
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
| | May 29, | | May 30, | |
| | 2010 | | 2009 | |
| | | | | |
Assets | | | | | |
| | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 1,083,985 | | $ | 855,434 | |
Short term investment securities | | 560,174 | | 2,000 | |
Merchandise inventories | | 1,846,140 | | 1,703,819 | |
Other current assets | | 292,054 | | 272,681 | |
| | | | | |
Total current assets | | 3,782,353 | | 2,833,934 | |
| | | | | |
Long term investment securities | | 133,835 | | 216,196 | |
Property and equipment, net | | 1,103,367 | | 1,120,393 | |
Other assets | | 341,471 | | 335,531 | |
| | | | | |
| | $ | 5,361,026 | | $ | 4,506,054 | |
| | | | | |
Liabilities and Shareholders’ Equity | | | | | |
| | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 678,685 | | $ | 603,402 | |
Accrued expenses and other current liabilities | | 271,193 | | 247,256 | |
Merchandise credit and gift card liabilities | | 175,404 | | 160,629 | |
Current income taxes payable | | 89,400 | | 55,361 | |
| | | | | |
Total current liabilities | | 1,214,682 | | 1,066,648 | |
| | | | | |
Deferred rent and other liabilities | | 257,312 | | 232,790 | |
Income taxes payable | | 105,813 | | 96,264 | |
| | | | | |
Total liabilities | | 1,577,807 | | 1,395,702 | |
| | | | | |
Total shareholders’ equity | | 3,783,219 | | 3,110,352 | |
| | | | | |
| | $ | 5,361,026 | | $ | 4,506,054 | |
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
| | Three Months Ended | |
| | May 29, | | May 30, | |
| | 2010 | | 2009 | |
| | | | | |
Cash Flows from Operating Activities: | | | | | |
| | | | | |
Net earnings | | $ | 137,553 | | $ | 87,172 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | |
Depreciation | | 45,013 | | 44,779 | |
Stock-based compensation | | 11,836 | | 11,010 | |
Tax benefit from stock-based compensation | | (2,679 | ) | (55 | ) |
Deferred income taxes | | (1,303 | ) | (5,081 | ) |
Other | | (304 | ) | 54 | |
(Increase) decrease in assets: | | | | | |
Merchandise inventories | | (86,437 | ) | (61,480 | ) |
Trading investment securities | | (1,139 | ) | (2,439 | ) |
Other current assets | | (19,122 | ) | (16,998 | ) |
Other assets | | 128 | | 170 | |
Increase (decrease) in liabilities: | | | | | |
Accounts payable | | 77,767 | | 98,819 | |
Accrued expenses and other current liabilities | | (10,681 | ) | 2,220 | |
Merchandise credit and gift card liabilities | | 2,600 | | (4,992 | ) |
Income taxes payable | | 7,957 | | 34,856 | |
Deferred rent and other liabilities | | 11,094 | | 6,274 | |
| | | | | |
Net cash provided by operating activities | | 172,283 | | 194,309 | |
| | | | | |
Cash Flows from Investing Activities: | | | | | |
| | | | | |
Purchase of held-to-maturity investment securities | | (377,860 | ) | — | |
Redemption of held-to-maturity investment securities | | 217,520 | | — | |
Redemption of available-for-sale investment securities | | 30,850 | | 7,600 | |
Capital expenditures | | (39,032 | ) | (26,588 | ) |
| | | | | |
Net cash used in investing activities | | (168,522 | ) | (18,988 | ) |
| | | | | |
Cash Flows from Financing Activities: | | | | | |
| | | | | |
Proceeds from exercise of stock options | | 68,364 | | 23,303 | |
Excess tax benefit from stock-based compensation | | 962 | | 1,712 | |
Repurchase of common stock, including fees | | (85,202 | ) | (13,111 | ) |
| | | | | |
Net cash (used in) provided by financing activities | | (15,876 | ) | 11,904 | |
| | | | | |
Net (decrease) increase in cash and cash equivalents | | (12,115 | ) | 187,225 | |
| | | | | |
Cash and cash equivalents: | | | | | |
Beginning of period | | 1,096,100 | | 668,209 | |
End of period | | $ | 1,083,985 | | $ | 855,434 | |
