UNION, N.J., Sept. 21, 2016 /PRNewswire/ -- Bed Bath
& Beyond Inc. (NASDAQ: BBBY) today reported financial results
for the second quarter of fiscal 2016 ended August 27, 2016.
Second Quarter Results
For the second quarter of fiscal 2016, the Company reported net
earnings of $1.11 per diluted share
($167.3 million) compared with
$1.21 per diluted share ($201.7 million) for the second quarter of fiscal
2015. Net sales for the second quarter of fiscal 2016 were
approximately $2.988 billion, a
decrease of approximately 0.2% from net sales of approximately
$2.995 billion reported in the second
quarter of fiscal 2015. Comparable sales in the second
quarter of fiscal 2016 decreased by approximately 1.2%, compared
with an increase of approximately 0.7% in last year's fiscal second
quarter. Comparable sales from customer-facing digital
channels grew in excess of 20% while comparable sales from stores
declined in the low single-digit percentage range during the second
quarter of fiscal 2016.
Capital Allocation
The Company's Board of Directors has declared a quarterly
dividend of $.125 per share, to be
paid on January 17, 2017 to
shareholders of record as of the close of business on December 16, 2016.
During the second quarter of fiscal 2016, the Company
repurchased approximately $121
million of its common stock, representing approximately 2.7
million shares, under its existing $2.5
billion share repurchase program. As of August 27, 2016, the program had a remaining
balance of approximately $2.0
billion, and is expected to be completed in the latter half
of fiscal 2019 or in fiscal 2020.
Fiscal 2016 Outlook
Bed Bath & Beyond Inc.'s conference call with analysts and
investors will be held today at 5:00 pm
(ET). During this call, the Company plans to review its
fiscal 2016 financial planning assumptions.
Based on these planning assumptions, which reflect actual
results through the fiscal second quarter, the slight dilution
anticipated from the Company's purchase of One Kings Lane, Inc.,
and current business trends, the Company continues to model its
fiscal 2016 net earnings per diluted share to be within the
$4.50 to just over $5.00 range that it has earned over the past
several years, during a heavy investment phase. This is the range
of net earnings per diluted share that the Company described in its
two previous earnings press releases.
The Company's fiscal 2016 second quarter conference call may be
accessed by dialing 1-888-771-4371, or if international,
847-585-4405, using conference ID number 43322661. The replay of
the call can be accessed by dialing 1-888-843-7419, using
conference ID number 43322661. The call and replay can also
be accessed via audio webcast on the investor relations section of
our website at www.bedbathandbeyond.com.
About the Company
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is a
retailer selling a wide assortment of domestics merchandise and
home furnishings which operates under the names Bed Bath &
Beyond, Christmas Tree Shops, Christmas Tree Shops andThat! or
andThat!, Harmon or Harmon Face Values, buybuy BABY and World
Market, Cost Plus World Market or Cost Plus. Customers can purchase
products from the Company either in-store, online, with a mobile
device or through a contact center. The Company generally has the
ability to have customer purchases picked up in-store or shipped
direct to the customer from the Company's distribution facilities,
stores or vendors. In addition, the Company operates Of a
Kind, an e-commerce website that features specially commissioned,
limited edition items from emerging fashion and home designers, and
One Kings Lane, an authority in home
décor and design offering a unique collection of select home goods,
designer and vintage items. The Company also operates Linen
Holdings, a provider of a variety of textile products, amenities
and other goods to institutional customers in the hospitality,
cruise line, healthcare and other industries. Additionally,
the Company is a partner in a joint venture which operates retail
stores in Mexico under the name
Bed Bath & Beyond.
The Company operates websites at bedbathandbeyond.com,
bedbathandbeyond.ca, worldmarket.com, buybuybaby.com,
buybuybaby.ca, christmastreeshops.com, harmondiscount.com,
ofakind.com, onekingslane.com, harborlinen.com and
t-ygroup.com. As of August 27,
2016, the Company had a total of 1,539 stores, including
1,024 Bed Bath & Beyond stores in all 50 states, the
District of Columbia, Puerto Rico and Canada, 278 stores under the names of World
Market, Cost Plus World Market or Cost Plus, 107 buybuy BABY
stores, 79 stores under the names Christmas Tree Shops, Christmas
Tree Shops andThat! or andThat!, and 51 stores under the names
Harmon or Harmon Face Values. During the fiscal second
quarter, the Company opened three Bed Bath & Beyond stores, one
Cost Plus World Market store and two buybuy Baby stores. In
addition, the Company is a partner in a joint venture which
operates eight stores in Mexico
under the name Bed Bath & Beyond.
Forward-Looking Statements
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, approximate,
estimate, assume, continue, model, 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.
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, spending habits and adoption of
new technologies; demographics and other macroeconomic factors that
may impact the level of spending for the types of merchandise sold
by the Company; civil disturbances and terrorist acts; unusual
weather patterns and natural disasters; competition from existing
and potential competitors; competition from other channels of
distribution; pricing pressures; liquidity; the ability to attract
and retain qualified employees in all areas of the organization;
the cost of labor, merchandise and other costs and expenses;
potential supply chain disruption due to political instability,
labor disturbances, product recalls, financial or operational
instability of suppliers or carriers, and other items; the ability
to find suitable locations at acceptable occupancy costs and other
terms to support the Company's plans for new stores; the ability to
assess and implement technologies in support of the Company's
development of its omnichannel capabilities; the ability to
establish and profitably maintain the appropriate mix of digital
and physical presence in the markets it serves; uncertainty in
financial markets; disruptions to the Company's information
technology systems including but not limited to security breaches
of systems protecting consumer and employee information;
reputational risk arising from challenges to the Company's or a
third party supplier's compliance with various laws, regulations or
standards, including those related to labor, health, safety,
privacy or the environment; reputational risk arising from
third-party merchandise or service vendor performance in direct
home delivery or assembly of product for customers; changes to
statutory, regulatory and legal requirements; new, or developments
in existing, litigation, claims or assessments; changes to, or new,
tax laws or interpretation of existing tax laws; changes to, or
new, accounting standards; foreign currency exchange rate
fluctuations; and the integration of acquired businesses. 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
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August
27,
|
|
August
29,
|
|
August
27,
|
|
August
29,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,988,235
|
|
$
|
2,995,469
|
|
$
|
5,726,319
|
|
$
|
5,733,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
1,871,342
|
|
|
1,854,519
|
|
|
3,585,834
|
|
|
3,548,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
1,116,893
|
|
|
1,140,950
|
|
|
2,140,485
|
|
|
2,185,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
835,920
|
|
|
790,756
|
|
|
1,646,486
|
|
|
1,561,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
280,973
|
|
|
350,194
|
|
|
493,999
|
|
|
623,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
18,199
|
|
|
25,053
|
|
|
34,514
|
|
|
44,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
provision for income taxes
|
|
262,774
|
|
|
325,141
|
|
|
459,485
|
|
|
578,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
95,439
|
|
|
123,463
|
|
|
169,531
|
|
|
218,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
|
167,335
|
|
$
|
201,678
|
|
$
|
289,954
|
|
$
|
360,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share - Basic
|
$
|
1.12
|
|
$
|
1.22
|
|
$
|
1.92
|
|
$
|
2.16
|
|
|
Net earnings per
share - Diluted
|
$
|
1.11
|
|
$
|
1.21
|
|
$
|
1.91
|
|
$
|
2.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
|
149,725
|
|
|
165,024
|
|
|
150,941
|
|
|
166,898
|
|
|
Weighted average
shares outstanding - Diluted
|
|
150,515
|
|
|
166,633
|
|
|
152,133
|
|
|
168,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.125
|
|
$
|
-
|
|
$
|
0.250
|
|
$
|
-
|
|
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August
27,
|
|
August
29,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
577,844
|
|
$
|
667,563
|
|
|
Short term
investment securities
|
|
|
-
|
|
|
28,905
|
|
|
Merchandise
inventories
|
|
|
|
2,903,647
|
|
|
2,875,417
|
|
|
Other current
assets
|
|
|
|
447,013
|
|
|
426,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
|
|
3,928,504
|
|
|
3,997,892
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term investment
securities
|
|
|
|
82,740
|
|
|
70,501
|
|
Property and
equipment, net
|
|
|
|
1,739,952
|
|
|
1,669,951
|
|
Goodwill
|
|
|
|
|
520,226
|
|
|
487,139
|
|
Other
assets
|
|
|
|
|
397,953
|
|
|
416,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,669,375
|
|
$
|
6,642,210
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
|
1,192,574
|
|
$
|
1,196,798
|
|
|
Accrued expenses and
other current liabilities
|
|
|
473,595
|
|
|
428,464
|
|
|
Merchandise credit
and gift card liabilities
|
|
|
307,969
|
|
|
317,247
|
|
|
Current income taxes
payable
|
|
|
23,539
|
|
|
60,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
|
1,997,677
|
|
|
2,003,199
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred rent and
other liabilities
|
|
|
|
529,589
|
|
|
492,780
|
|
Income taxes
payable
|
|
|
|
76,744
|
|
|
87,059
|
|
Long term
debt
|
|
|
|
|
1,491,370
|
|
|
1,490,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
4,095,380
|
|
|
4,073,942
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock -
$0.01 par value; authorized - 1,000
|
|
|
|
|
|
|
|
shares; no
shares issued or outstanding
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock - $0.01
par value; authorized - 900,000 shares;
|
|
|
|
|
|
|
|
issued 339,520
and 337,560 shares, respectively;
|
|
|
|
|
|
|
|
outstanding
152,084 and 166,892 shares, respectively
|
|
3,395
|
|
|
3,376
|
|
|
Additional paid-in
capital
|
|
|
|
1,939,470
|
|
|
1,849,677
|
|
|
Retained
earnings
|
|
|
|
10,646,033
|
|
|
9,913,505
|
|
|
Treasury stock, at
cost; 187,436 and 170,668 shares, respectively
|
|
(9,968,003)
|
|
|
(9,147,228)
|
|
|
Accumulated other
comprehensive loss
|
|
|
(46,900)
|
|
|
(51,062)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
|
2,573,995
|
|
|
2,568,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,669,375
|
|
$
|
6,642,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
reclassifications have been made to the Fiscal Year 2015 balance
sheet to conform to the Fiscal Year 2016 consolidated balance sheet
presentation.
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August
27,
|
|
August
29,
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
$
|
289,954
|
|
$
|
360,129
|
|
|
Adjustments to
reconcile net earnings to net cash
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
141,293
|
|
|
127,113
|
|
|
|
Stock-based
compensation
|
|
|
|
37,563
|
|
|
33,859
|
|
|
|
Excess tax benefit
from stock-based compensation
|
|
|
(1,481)
|
|
|
(10,331)
|
|
|
|
Deferred income
taxes
|
|
|
|
|
11,842
|
|
|
(10,798)
|
|
|
|
Other
|
|
|
|
|
|
(809)
|
|
|
1,169
|
|
|
|
Increase in assets,
net of effect of acquisition:
|
|
|
|
|
|
|
|
|
|
Merchandise
inventories
|
|
|
|
(48,849)
|
|
|
(147,486)
|
|
|
|
Trading investment
securities
|
|
|
(11,657)
|
|
|
(2,134)
|
|
|
|
Other current
assets
|
|
|
|
(51,624)
|
|
|
(56,272)
|
|
|
|
Other assets
|
|
|
|
|
(11,611)
|
|
|
(6,782)
|
|
|
|
Increase (decrease)
in liabilities, net of effect of acquisition:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
121,431
|
|
|
81,421
|
|
|
|
Accrued expenses and other
current liabilities
|
|
|
(225)
|
|
|
18,115
|
|
|
|
Merchandise credit and gift
card liabilities
|
|
|
9,850
|
|
|
11,356
|
|
|
|
Income taxes
payable
|
|
|
|
(35,438)
|
|
|
1,174
|
|
|
|
Deferred rent and other
liabilities
|
|
|
17,977
|
|
|
8,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
468,216
|
|
|
409,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of
held-to-maturity investment securities
|
|
|
-
|
|
|
(16,873)
|
|
|
Redemption of
held-to-maturity investment securities
|
|
|
86,240
|
|
|
126,875
|
|
|
Capital
expenditures
|
|
|
|
|
(184,789)
|
|
|
(160,805)
|
|
|
Investment in
unconsolidated joint venture
|
|
|
(3,318)
|
|
|
-
|
|
|
Payment for
acquisition, net of cash acquired
|
|
|
(11,777)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
|
(113,644)
|
|
|
(50,803)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
exercise of stock options
|
|
|
20,258
|
|
|
7,879
|
|
|
Excess tax benefit
from stock-based compensation
|
|
|
1,481
|
|
|
10,331
|
|
|
Payment of
dividends
|
|
|
|
|
(18,827)
|
|
|
-
|
|
|
Repurchase of common
stock, including fees
|
|
|
(299,486)
|
|
|
(579,296)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
|
|
(296,574)
|
|
|
(561,086)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
4,273
|
|
|
(5,455)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
62,271
|
|
|
(208,011)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
|
Beginning of
period
|
|
|
|
|
515,573
|
|
|
875,574
|
|
|
End of
period
|
|
|
|
|
$
|
577,844
|
|
$
|
667,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bed-bath--beyond-inc-reports-results-for-fiscal-2016-second-quarter-300332063.html
SOURCE Bed Bath & Beyond Inc.