UNION, N.J., Dec. 21, 2016 /PRNewswire/ -- Bed Bath &
Beyond Inc. (NASDAQ: BBBY) today reported financial results for the
third quarter of fiscal 2016 ended November
26, 2016.
Third Quarter Results
For the third quarter of fiscal 2016, the Company reported net
earnings of $.85 per diluted share
($126.4 million) compared with
$1.09 per diluted share ($177.8 million) for the third quarter of fiscal
2015. Net sales for the third quarter of fiscal 2016 were
approximately $2.955 billion, an
increase of approximately 0.1% from net sales of approximately
$2.952 billion reported in the third
quarter of fiscal 2015. Comparable sales in the third quarter
of fiscal 2016 decreased by approximately 1.4%, compared with a
decrease of approximately 0.4% in last year's fiscal third
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 third
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 April 18, 2017 to
shareholders of record at the close of business on March 17, 2017.
During the third quarter of fiscal 2016, the Company repurchased
approximately $76 million of its
common stock, representing approximately 1.8 million shares, under
its existing $2.5 billion share
repurchase program. As of November 26,
2016, the program had a remaining balance of approximately
$1.9 billion, and is expected to be
completed sometime 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 some of
its financial planning assumptions for fiscal 2016.
Based on these planning assumptions, which reflect actual
results through the fiscal third quarter, including One Kings Lane, Inc., and
PersonalizationMall.com since their dates of acquisition, and
recent business conditions, the Company models its fiscal 2016 net
earnings per diluted share to be at the low end of 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
historical range of net earnings per diluted share that the Company
described in previous earnings press releases.
One Kings Lane, Inc. is excluded
from the comparable sales calculation and will continue to be
excluded until a point following the anniversary of the
acquisition, after the re-platforming of One Kings Lane, Inc.'s
systems and integration of its support services have been in place
to allow for a meaningful comparison of One Kings Lane, Inc.'s
sales over the prior period. PersonalizationMall.com is also
excluded from the comparable sales calculation and will continue to
be excluded until after the anniversary of the acquisition.
Fiscal 2016 Third Quarter Conference Call
The Company's fiscal 2016 third quarter conference call may be
accessed by dialing 1-888-771-4371, or if international,
847-585-4405, using conference ID number 43897412. The replay of
the call can be accessed by dialing 1-888-843-7419, using
conference ID number 43897412. 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, Harmon Face Values or 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; One Kings Lane,
an authority in home décor and design offering a unique collection
of select home goods, designer and vintage items; and
PersonalizationMall.com, an industry-leading online retailer of
personalized products. 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, personalizationmall.com,
harborlinen.com and t-ygroup.com. As of November 26, 2016, the Company had a total of
1,541 stores, including 1,021 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, 111 buybuy
BABY stores, 79 stores under the names Christmas Tree Shops,
Christmas Tree Shops andThat! or andThat!, and 52 stores under the
names Harmon, Harmon Face Values or Face Values. During the
fiscal third quarter, the Company opened five Bed Bath & Beyond
stores, four buybuy BABY stores and one Harmon Face Values store,
and closed eight Bed Bath & Beyond 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
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November
26,
|
|
November
28,
|
|
November
26,
|
|
November
28,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,955,484
|
|
$
|
2,952,031
|
|
$
|
8,681,803
|
|
$
|
8,685,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
1,862,710
|
|
|
1,836,720
|
|
|
5,448,544
|
|
|
5,385,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
1,092,774
|
|
|
1,115,311
|
|
|
3,233,259
|
|
|
3,300,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
881,491
|
|
|
822,453
|
|
|
2,527,977
|
|
|
2,384,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
211,283
|
|
|
292,858
|
|
|
705,282
|
|
|
916,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
18,254
|
|
|
18,052
|
|
|
52,768
|
|
|
63,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
provision for income taxes
|
|
193,029
|
|
|
274,806
|
|
|
652,514
|
|
|
853,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
66,605
|
|
|
96,990
|
|
|
236,136
|
|
|
315,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
|
126,424
|
|
$
|
177,816
|
|
$
|
416,378
|
|
$
|
537,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share - Basic
|
$
|
0.86
|
|
$
|
1.10
|
|
$
|
2.78
|
|
$
|
3.26
|
|
Net earnings per
share - Diluted
|
$
|
0.85
|
|
$
|
1.09
|
|
$
|
2.76
|
|
$
|
3.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
|
147,643
|
|
|
162,005
|
|
|
149,842
|
|
|
165,267
|
|
Weighted average
shares outstanding - Diluted
|
|
148,583
|
|
|
163,582
|
|
|
150,950
|
|
|
167,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.125
|
|
$
|
-
|
|
$
|
0.375
|
|
$
|
-
|
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November
26,
|
|
November
28,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
473,006
|
|
$
|
490,737
|
|
|
Merchandise
inventories
|
|
|
|
3,268,569
|
|
|
3,219,667
|
|
|
Other current
assets
|
|
|
|
528,547
|
|
|
480,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
|
|
4,270,122
|
|
|
4,190,536
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term investment
securities
|
|
|
|
86,404
|
|
|
74,666
|
|
Property and
equipment, net
|
|
|
|
1,769,061
|
|
|
1,686,632
|
|
Goodwill
|
|
|
|
|
709,400
|
|
|
487,166
|
|
Other
assets
|
|
|
|
|
397,814
|
|
|
396,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,232,801
|
|
$
|
6,835,013
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
|
1,621,432
|
|
$
|
1,402,968
|
|
|
Accrued expenses and
other current liabilities
|
|
|
581,640
|
|
|
467,654
|
|
|
Merchandise credit
and gift card liabilities
|
|
|
304,319
|
|
|
317,430
|
|
|
Current income taxes
payable
|
|
|
-
|
|
|
4,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
|
2,507,391
|
|
|
2,192,379
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred rent and
other liabilities
|
|
|
|
542,624
|
|
|
504,469
|
|
Income taxes
payable
|
|
|
|
76,316
|
|
|
81,390
|
|
Long term
debt
|
|
|
|
|
1,491,487
|
|
|
1,491,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
4,617,818
|
|
|
4,269,259
|
|
|
|
|
|
|
|
|
|
|
|
|
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 339,524
and 337,554 shares, respectively;
|
|
|
|
|
|
|
|
outstanding
150,315 and 163,587 shares, respectively
|
|
3,395
|
|
|
3,376
|
|
|
Additional paid-in
capital
|
|
|
|
1,956,594
|
|
|
1,866,071
|
|
|
Retained
earnings
|
|
|
|
10,753,801
|
|
|
10,091,321
|
|
|
Treasury stock, at
cost; 189,209 and 173,967 shares, respectively
|
|
(10,044,058)
|
|
|
(9,341,450)
|
|
|
Accumulated other
comprehensive loss
|
|
|
(54,749)
|
|
|
(53,564)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
|
2,614,983
|
|
|
2,565,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,232,801
|
|
$
|
6,835,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November
26,
|
|
November
28,
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
$
|
416,378
|
|
$
|
537,945
|
|
|
Adjustments to
reconcile net earnings to net cash
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
215,164
|
|
|
193,633
|
|
|
|
Stock-based
compensation
|
|
|
|
54,298
|
|
|
49,848
|
|
|
|
Excess tax benefit
from stock-based compensation
|
|
|
(1,485)
|
|
|
(10,380)
|
|
|
|
Deferred income
taxes
|
|
|
|
|
36,857
|
|
|
22,848
|
|
|
|
Other
|
|
|
|
|
|
(1,090)
|
|
|
740
|
|
|
|
Increase in assets,
net of effect of acquisitions:
|
|
|
|
|
|
|
|
|
|
Merchandise
inventories
|
|
|
|
(405,198)
|
|
|
(493,054)
|
|
|
|
Trading investment
securities
|
|
|
(15,345)
|
|
|
(6,300)
|
|
|
|
Other current
assets
|
|
|
|
(127,487)
|
|
|
(124,143)
|
|
|
|
Other assets
|
|
|
|
|
(10,289)
|
|
|
(6,611)
|
|
|
|
Increase (decrease)
in liabilities, net of effect of acquisitions:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
536,577
|
|
|
288,304
|
|
|
|
Accrued expenses and other
current liabilities
|
|
|
90,595
|
|
|
64,986
|
|
|
|
Merchandise credit and gift
card liabilities
|
|
|
6,408
|
|
|
11,584
|
|
|
|
Income taxes
payable
|
|
|
|
(73,055)
|
|
|
(60,933)
|
|
|
|
Deferred rent and other
liabilities
|
|
|
20,367
|
|
|
21,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
742,695
|
|
|
489,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Redemption of
available-for-sale investment securities
|
|
|
-
|
|
|
28,905
|
|
|
Capital
expenditures
|
|
|
|
|
(276,436)
|
|
|
(244,255)
|
|
|
Investment in
unconsolidated joint venture
|
|
|
(3,318)
|
|
|
-
|
|
|
Payment for
acquisitions, net of cash acquired
|
|
|
(200,477)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
|
(393,991)
|
|
|
(105,348)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
exercise of stock options
|
|
|
20,258
|
|
|
7,879
|
|
|
Payment of other
liabilities
|
|
|
|
|
-
|
|
|
(7,646)
|
|
|
Excess tax benefit
from stock-based compensation
|
|
|
1,485
|
|
|
10,380
|
|
|
Payment of
dividends
|
|
|
|
|
(37,358)
|
|
|
-
|
|
|
Repurchase of common
stock, including fees
|
|
|
(375,541)
|
|
|
(773,518)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
|
|
(391,156)
|
|
|
(762,905)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(115)
|
|
|
(6,516)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
|
|
(42,567)
|
|
|
(384,837)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
|
Beginning of
period
|
|
|
|
|
515,573
|
|
|
875,574
|
|
|
End of
period
|
|
|
|
|
$
|
473,006
|
|
$
|
490,737
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bed-bath--beyond-inc-reports-results-for-fiscal-2016-third-quarter-300382765.html
SOURCE Bed Bath & Beyond