UNION, N.J., June 22, 2017 /PRNewswire/ -- Bed Bath &
Beyond Inc. (NASDAQ: BBBY) today reported financial results for the
first quarter of fiscal 2017 ended May 27,
2017.
First Quarter Results
For the fiscal 2017 first quarter, the Company reported net
earnings of $.53 per diluted share
($75.3 million), including an
unfavorable impact of approximately $.05 from the adoption of the new share-based
payment accounting standard, compared with $.80 per diluted share ($122.6 million) for the fiscal 2016 first
quarter. Net sales for the fiscal 2017 first quarter were
approximately $2.7 billion, an
increase of approximately 0.1% from the prior year quarter.
Comparable sales in the fiscal 2017 first quarter decreased by
approximately 2.0%, compared with a decrease of approximately 0.5%
in last year's fiscal first quarter. Comparable sales from
customer-facing digital channels continued to have strong growth in
excess of 20%, while comparable sales from stores declined in the
mid-single-digit percentage range during the fiscal 2017 first
quarter.
Capital Allocation
The Company's Board of Directors has declared a quarterly
dividend of $.15 per share, to be
paid on October 17, 2017 to
shareholders of record at the close of business on September 15, 2017.
During the fiscal 2017 first quarter, the Company repurchased
approximately $127 million of its
common stock, representing approximately 3.3 million shares, under
its existing $2.5 billion share
repurchase program. As of May 27,
2017, the program had a remaining balance of approximately
$1.6 billion.
Fiscal 2017
At this time, Bed Bath & Beyond Inc. is not updating its
full year modeling assumptions provided during its April 5, 2017 conference call with analysts and
investors.
Although the first quarter is typically the least impactful
quarter in terms of annual sales and earnings, and while the
Company continued to have strong growth in its
customer-facing-digital channels this quarter, the Company did
experience increased softness in transactions in stores, as well as
higher net-direct-to-customer shipping expense, coupon expense, and
advertising costs during the quarter. It remains to be seen
whether these challenges were more pronounced in, or unique to, the
first quarter due to the smaller sales base in this period, and/or
a later start to the summer selling period.
After the second quarter, the Company believes it will have
better visibility to the full-year and, if necessary, will update
its full-year modeling assumptions at that time.
Fiscal 2017 First Quarter Conference Call
Bed Bath & Beyond Inc.'s conference call with analysts and
investors will be held today at 5:00 pm
EDT, and may be accessed by dialing 1-888-771-4371, or
if international, 847-585-4405, using conference ID number
45080392. The replay of the call can be accessed by dialing
1-888-843-7419, using conference ID number 45080392. 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
an omnichannel 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 either in-store, online, with a
mobile device or through a customer 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;
PersonalizationMall.com, an industry-leading online retailer of
personalized products; Chef Central, an online retailer of
kitchenware, cookware and homeware items catering to cooking and
baking enthusiasts; and Decorist, an online interior design
platform that provides personalized home design services. 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, andthat.com,
harmondiscount.com, facevalues.com, ofakind.com, onekingslane.com,
personalizationmall.com, chefcentral.com, decorist.com,
harborlinen.com, and t-ygroup.com. As of May 27, 2017, the Company had a total of 1,546
stores, including 1,022 Bed Bath & Beyond stores in all 50
states, the District of Columbia,
Puerto Rico and Canada, 276 stores under the names of World
Market, Cost Plus World Market or Cost Plus, 113 buybuy BABY
stores, 80 stores under the names Christmas Tree Shops, Christmas
Tree Shops andThat! or andThat!, and 55 stores under the names
Harmon, Harmon Face Values or Face Values. During the fiscal
first quarter, the Company opened one Harmon Face Values store, and
closed one Bed Bath & Beyond store. 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 trade restrictions,
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; volatility in the price
of the Company's common stock and its effect, and the effect of
other factors, on the Company's capital allocation strategy;
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, including without limitation proposed changes
affecting international trade; changes to, or new, tax laws or
interpretation of existing tax laws, including without limitation
the proposed border adjustment tax; new, or developments in
existing, litigation, claims or assessments; 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May
27,
|
|
May
28,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,742,141
|
|
$
|
2,738,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
1,742,026
|
|
|
1,714,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
1,000,115
|
|
|
1,023,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
853,104
|
|
|
810,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
147,011
|
|
|
213,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
16,580
|
|
|
16,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
provision for income taxes
|
|
130,431
|
|
|
196,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
55,148
|
|
|
74,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
|
75,283
|
|
$
|
122,619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share - Basic
|
$
|
0.53
|
|
$
|
0.81
|
|
|
Net earnings per
share - Diluted
|
$
|
0.53
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
|
141,331
|
|
|
152,157
|
|
|
Weighted average
shares outstanding - Diluted
|
|
142,141
|
|
|
153,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.150
|
|
$
|
0.125
|
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May
27,
|
|
May
28,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
469,320
|
|
$
|
544,269
|
|
|
|
Short term
investment securities
|
|
|
-
|
|
|
22,495
|
|
|
|
Merchandise
inventories
|
|
|
|
2,962,936
|
|
|
2,923,043
|
|
|
|
Other current
assets
|
|
|
|
217,917
|
|
|
207,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
|
|
3,650,173
|
|
|
3,697,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term investment
securities
|
|
|
|
96,121
|
|
|
78,349
|
|
|
Property and
equipment, net
|
|
|
|
1,817,594
|
|
|
1,723,429
|
|
|
Goodwill
|
|
|
|
|
707,643
|
|
|
487,169
|
|
|
Other
assets
|
|
|
|
|
604,270
|
|
|
586,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,875,801
|
|
$
|
6,573,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
|
1,178,811
|
|
$
|
1,145,055
|
|
|
|
Accrued expenses and
other current liabilities
|
|
|
509,501
|
|
|
471,728
|
|
|
|
Merchandise credit
and gift card liabilities
|
|
|
319,496
|
|
|
306,431
|
|
|
|
Current income taxes
payable
|
|
|
117,211
|
|
|
53,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
|
2,125,019
|
|
|
1,977,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred rent and
other liabilities
|
|
|
|
520,040
|
|
|
499,615
|
|
|
Income taxes
payable
|
|
|
|
66,431
|
|
|
75,977
|
|
|
Long term
debt
|
|
|
|
|
1,491,719
|
|
|
1,491,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
4,203,209
|
|
|
4,043,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 341,276
and 339,150, respectively;
|
|
|
|
|
|
|
|
|
|
outstanding
144,730 and 154,462 shares, respectively
|
|
3,413
|
|
|
3,392
|
|
|
|
Additional paid-in
capital
|
|
|
|
2,006,939
|
|
|
1,921,970
|
|
|
|
Retained
earnings
|
|
|
|
11,057,826
|
|
|
10,498,036
|
|
|
|
Treasury stock, at
cost; 196,546 and 184,688 shares, respectively
|
|
(10,342,863)
|
|
|
(9,846,641)
|
|
|
|
Accumulated other
comprehensive loss
|
|
|
(52,723)
|
|
|
(47,670)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
|
2,672,592
|
|
|
2,529,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,875,801
|
|
$
|
6,573,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
reclassifications have been made to the Fiscal Year 2016
consolidated balance sheet to conform to the Fiscal Year 2017
consolidated balance sheet presentation.
|
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May
27,
|
|
May
28,
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
$
|
75,283
|
|
$
|
122,619
|
|
|
|
|
Adjustments to
reconcile net earnings to net cash
|
|
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
74,912
|
|
|
70,445
|
|
|
|
|
|
Stock-based
compensation
|
|
|
|
21,490
|
|
|
20,748
|
|
|
|
|
|
Deferred income
taxes
|
|
|
|
|
(6,571)
|
|
|
4,153
|
|
|
|
|
|
Other
|
|
|
|
|
|
555
|
|
|
(479)
|
|
|
|
|
|
Increase in assets,
net of effect of acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
Merchandise
inventories
|
|
|
|
(59,916)
|
|
|
(71,933)
|
|
|
|
|
|
Trading investment
securities
|
|
|
(6,256)
|
|
|
(7,515)
|
|
|
|
|
|
Other current
assets
|
|
|
|
(20,146)
|
|
|
(32,502)
|
|
|
|
|
|
Other assets
|
|
|
|
|
(631)
|
|
|
(11,946)
|
|
|
|
|
|
Increase (decrease)
in liabilities, net of effect of acquisitions:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
24,567
|
|
|
66,260
|
|
|
|
|
|
Accrued expenses and other
current liabilities
|
|
|
25,591
|
|
|
42,631
|
|
|
|
|
|
Merchandise credit and gift
card liabilities
|
|
|
10,172
|
|
|
8,319
|
|
|
|
|
|
Income taxes
payable
|
|
|
|
55,805
|
|
|
(4,932)
|
|
|
|
|
|
Deferred rent and other
liabilities
|
|
|
9,779
|
|
|
3,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
204,634
|
|
|
209,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemption of
held-to-maturity investment securities
|
|
|
-
|
|
|
63,742
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
(80,760)
|
|
|
(89,455)
|
|
|
|
|
Payment for
acquisition, net of cash acquired
|
|
|
(4,344)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
|
(85,104)
|
|
|
(25,713)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
exercise of stock options
|
|
|
10,161
|
|
|
19,246
|
|
|
|
|
Payment of
dividends
|
|
|
|
|
(18,161)
|
|
|
-
|
|
|
|
|
Repurchase of common
stock, including fees
|
|
|
(127,324)
|
|
|
(178,124)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
|
|
(135,324)
|
|
|
(158,878)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(3,215)
|
|
|
4,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
|
(19,009)
|
|
|
28,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of
period
|
|
|
|
|
488,329
|
|
|
515,573
|
|
|
|
|
End of
period
|
|
|
|
|
$
|
469,320
|
|
$
|
544,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
reclassifications have been made to the Fiscal Year 2016
consolidated statement of cash flows to conform to the Fiscal Year
2017 consolidated cash flows presentation.
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bed-bath--beyond-inc-reports-results-for-fiscal-2017-first-quarter-300478622.html
SOURCE Bed Bath & Beyond