UNION, N.J., April 5, 2017 /PRNewswire/ -- Bed Bath &
Beyond Inc. (NASDAQ: BBBY) today reported financial results for the
fourth quarter and full year of fiscal 2016 ended February 25, 2017.
Fiscal 2016 Fourth Quarter Results
For the fiscal fourth quarter, the Company reported net earnings
of $1.84 per diluted share
($268.7 million) compared with
$1.91 per diluted share ($303.5 million) for the fiscal 2015 fourth
quarter, which included approximately $.06 per diluted share of a net benefit for
certain non-recurring items. Net sales for the fiscal 2016
fourth quarter were approximately $3.5
billion, an increase of approximately 3.4% from net sales of
approximately $3.4 billion reported
in the fiscal 2015 fourth quarter. Comparable sales in the
fiscal 2016 fourth quarter increased by approximately 0.4%,
compared with an increase of approximately 1.7% in last year's
fiscal fourth 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
fiscal 2016 fourth quarter.
Fiscal 2016 Full Year Results
For the fiscal full year, the Company reported net earnings of
$4.58 per diluted share ($685.1 million) compared with $5.10 per diluted share ($841.5 million) in the corresponding period a
year ago which included approximately $.06 per diluted share of a net benefit for
certain non-recurring items. Net sales for fiscal 2016 were
approximately $12.2 billion, an
increase of approximately 0.9% from net sales of approximately
$12.1 billion in fiscal 2015.
Comparable sales for the fiscal full year decreased by
approximately 0.6% for fiscal 2016 compared with an increase of
approximately 1.0% in fiscal 2015. 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 for the fiscal full year.
Steven H. Temares, Chief
Executive Officer and Member of the Board of Directors of Bed Bath
& Beyond Inc. stated, "During fiscal 2016, we made significant
investments to evolve our Company and advance our mission to be
trusted by our customers as the expert for the home and
'heart-related' life events by continuing to build and deliver a
strong foundation of differentiated products, and services and
solutions for customers, while driving operational excellence."
Capital Allocation
As a reflection of the long-term health of the business, and
commitment to creating shareholder value, the Company's Board of
Directors today declared an increase in the quarterly dividend to
$.15 per share. The increased
quarterly dividend is payable on July 18,
2017 to shareholders of record at the close of business on
June 16, 2017.
During the fiscal 2016 fourth quarter, the Company repurchased
approximately $171 million of its
common stock, representing approximately 4.1 million shares, under
its existing $2.5 billion share
repurchase program. As of February 25,
2017, the program had a remaining balance of approximately
$1.7 billion, and is expected to be
completed sometime in fiscal 2020.
Fiscal 2017 Outlook
Bed Bath & Beyond Inc.'s conference call with analysts and
investors will be held today at 5:00 pm
EDT. During this call, the Company plans to review certain
of its financial planning assumptions for fiscal 2017.
Based on these planning assumptions, Bed Bath & Beyond Inc.
is modeling a decline in net earnings per diluted share in the
percentage range of low-single digits to 10 percent for fiscal
2017.
Fiscal 2016 Fourth Quarter Conference Call
The Company's fiscal 2016 fourth quarter conference call may be
accessed by dialing 1-888-771-4371, or if international,
847-585-4405, using conference ID number 44538918. The replay of
the call can be accessed by dialing 1-888-843-7419, using
conference ID number 44538918. 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;
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, harmondiscount.com,
ofakind.com, onekingslane.com, personalizationmall.com,
chefcentral.com, decorist.com, harborlinen.com and
t-ygroup.com. As of February 25,
2017, the Company had a total of 1,546 stores, including
1,023 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 54 stores under the names
Harmon, Harmon Face Values or Face Values. During the fiscal
fourth quarter, the Company opened two Bed Bath & Beyond
stores, two World Market stores, two buybuy BABY stores, two Harmon
Face Values stores, and one andThat! store, and closed four World
Market 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 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; 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
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February
25,
|
|
February
27,
|
|
February
25,
|
|
February
27,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
3,533,954
|
|
$
|
3,417,892
|
|
$
|
12,215,757
|
|
$
|
12,103,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
2,190,863
|
|
|
2,097,976
|
|
|
7,639,407
|
|
|
7,483,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
1,343,091
|
|
|
1,319,916
|
|
|
4,576,350
|
|
|
4,620,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
913,163
|
|
|
821,334
|
|
|
3,441,140
|
|
|
3,205,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
429,928
|
|
|
498,582
|
|
|
1,135,210
|
|
|
1,414,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
16,787
|
|
|
24,452
|
|
|
69,555
|
|
|
87,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
provision for income taxes
|
|
413,141
|
|
|
474,130
|
|
|
1,065,655
|
|
|
1,327,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
144,411
|
|
|
170,586
|
|
|
380,547
|
|
|
485,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
268,730
|
|
$
|
303,544
|
|
$
|
685,108
|
|
$
|
841,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share - Basic
|
$
|
1.86
|
|
$
|
1.93
|
|
$
|
4.61
|
|
$
|
5.15
|
Net earnings per
share - Diluted
|
$
|
1.84
|
|
$
|
1.91
|
|
$
|
4.58
|
|
$
|
5.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
|
144,835
|
|
|
157,228
|
|
|
148,590
|
|
|
163,257
|
Weighted average
shares outstanding - Diluted
|
|
145,981
|
|
|
158,717
|
|
|
149,708
|
|
|
165,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.125
|
|
$
|
-
|
|
$
|
0.500
|
|
$
|
-
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
February
25,
|
|
February
27,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
488,329
|
|
$
|
515,573
|
|
Short term
investment securities
|
|
-
|
|
|
86,197
|
|
Merchandise
inventories
|
|
2,905,660
|
|
|
2,848,119
|
|
Other current
assets
|
|
416,755
|
|
|
376,073
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
3,810,744
|
|
|
3,825,962
|
|
|
|
|
|
|
|
Long term investment
securities
|
|
89,592
|
|
|
71,289
|
Property and
equipment, net
|
|
1,837,129
|
|
|
1,725,043
|
Goodwill
|
|
655,085
|
|
|
487,169
|
Other
assets
|
|
453,479
|
|
|
380,614
|
|
|
|
|
|
|
|
|
|
$
|
6,846,029
|
|
$
|
6,490,077
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,179,088
|
|
$
|
1,100,958
|
|
Accrued expenses and
other current liabilities
|
|
484,114
|
|
|
409,445
|
|
Merchandise credit
and gift card liabilities
|
|
309,478
|
|
|
297,930
|
|
Current income taxes
payable
|
|
59,821
|
|
|
58,892
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
2,032,501
|
|
|
1,867,225
|
|
|
|
|
|
|
|
Deferred rent and
other liabilities
|
|
534,677
|
|
|
499,368
|
Income taxes
payable
|
|
67,971
|
|
|
72,807
|
Long term
debt
|
|
1,491,603
|
|
|
1,491,137
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,126,752
|
|
|
3,930,537
|
|
|
|
|
|
|
|
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 339,533
and 337,613 shares, respectively;
|
|
|
|
|
|
|
outstanding
146,274 and 156,690 shares, respectively
|
|
3,395
|
|
|
3,377
|
|
Additional paid-in
capital
|
|
1,974,781
|
|
|
1,884,813
|
|
Retained
earnings
|
|
11,003,890
|
|
|
10,394,865
|
|
Treasury stock, at
cost; 193,259 and 180,923 shares, respectively
|
|
(10,215,539)
|
|
|
(9,668,517)
|
|
Accumulated other
comprehensive loss
|
|
(47,250)
|
|
|
(54,998)
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
2,719,277
|
|
|
2,559,540
|
|
|
|
|
|
|
|
|
|
$
|
6,846,029
|
|
$
|
6,490,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
February
25,
|
|
February
27,
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
685,108
|
|
$
|
841,489
|
|
Adjustments to
reconcile net earnings to net cash
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
290,914
|
|
|
273,947
|
|
|
Stock-based
compensation
|
|
71,911
|
|
|
66,965
|
|
|
Excess tax benefit
from stock-based compensation
|
|
(1,483)
|
|
|
(10,370)
|
|
|
Deferred income
taxes
|
|
24,878
|
|
|
56,997
|
|
|
Other
|
|
(1,032)
|
|
|
398
|
|
|
Increase in assets,
net of effect of acquisitions:
|
|
|
|
|
|
|
|
Merchandise
inventories
|
|
(38,493)
|
|
|
(121,748)
|
|
|
Trading investment
securities
|
|
(18,780)
|
|
|
(2,270)
|
|
|
Other current
assets
|
|
(18,464)
|
|
|
(16,171)
|
|
|
Other assets
|
|
(14,480)
|
|
|
(27,904)
|
|
|
Increase (decrease)
in liabilities, net of effect of acquisitions:
|
|
|
|
|
|
|
|
Accounts payable
|
|
49,458
|
|
|
(48,148)
|
|
|
Accrued expenses and other
current liabilities
|
|
(8,586)
|
|
|
6,694
|
|
|
Merchandise credit and gift
card liabilities
|
|
11,390
|
|
|
(7,872)
|
|
|
Income taxes
payable
|
|
(8,307)
|
|
|
(15,036)
|
|
|
Deferred rent and other
liabilities
|
|
17,754
|
|
|
15,213
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
1,041,788
|
|
|
1,012,184
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of
held-to-maturity investment securities
|
|
-
|
|
|
(103,017)
|
|
Redemption of
held-to-maturity investment securities
|
|
86,240
|
|
|
126,875
|
|
Redemption of
available-for-sale investment securities
|
|
-
|
|
|
28,905
|
|
Capital
expenditures
|
|
(373,574)
|
|
|
(328,395)
|
|
Investment in
unconsolidated joint venture
|
|
(3,318)
|
|
|
-
|
|
Payment for
acquisitions, net of cash acquired
|
|
(201,277)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(491,929)
|
|
|
(275,632)
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
exercise of stock options
|
|
20,424
|
|
|
9,109
|
|
Payment of other
liabilities
|
|
-
|
|
|
(7,646)
|
|
Excess tax benefit
from stock-based compensation
|
|
1,483
|
|
|
10,370
|
|
Payment of
dividends
|
|
(55,612)
|
|
|
-
|
|
Repurchase of common
stock, including fees
|
|
(547,022)
|
|
|
(1,100,585)
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(580,727)
|
|
|
(1,088,752)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
3,624
|
|
|
(7,801)
|
|
|
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
|
(27,244)
|
|
|
(360,001)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
Beginning of
period
|
|
515,573
|
|
|
875,574
|
|
End of
period
|
$
|
488,329
|
|
$
|
515,573
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bed-bath--beyond-inc-reports-results-for-fiscal-2016-fourth-quarter-and-full-year-300435499.html
SOURCE Bed Bath & Beyond Inc.