UNION, N.J., Dec. 20, 2017 /PRNewswire/ -- Bed Bath &
Beyond Inc. (NASDAQ:BBBY) today reported financial results for the
third quarter of fiscal 2017 ended November
25, 2017.
Third Quarter Results
For the fiscal 2017 third quarter, the Company reported net
earnings of $.44 per diluted share
($61.3 million) compared with
$.85 per diluted share ($126.4 million) for the fiscal 2016 third
quarter. Net sales for the fiscal 2017 third quarter were
approximately $3.0 billion,
relatively flat to the prior year quarter. Comparable sales
in the fiscal 2017 third quarter decreased by approximately
0.3%. Comparable sales from customer-facing digital channels
continued to have strong growth while comparable sales from stores
declined in the low-single-digit percentage range during the fiscal
2017 third quarter.
Capital Allocation
The Company's Board of Directors has declared a quarterly
dividend of $.15 per share, to be
paid on April 17, 2018 to
shareholders of record at the close of business on March 16, 2018.
During the fiscal 2017 third quarter, the Company repurchased
approximately $24 million of its
common stock, representing approximately 929,000 shares, under its
existing $2.5 billion share
repurchase program. As of November 25,
2017, the program had a remaining balance of approximately
$1.5 billion.
Fiscal 2017
During the conference call with analysts and investors, the
Company plans to review its quarterly results and its financial
planning assumptions for fiscal 2017, which is a 53-week year.
The Company's planning assumptions reflect actual results
through the fiscal third quarter and the current trends the Company
has been experiencing. Based upon its planning assumptions,
the Company continues to model net earnings per diluted share for
the full year to be about $3.00.
Fiscal 2017 Third Quarter Conference Call
Bed Bath & Beyond Inc.'s conference call with analysts and
investors will be held today at 5:00 pm
ET and may be accessed by dialing 1-800-446-1671, or
if international, 1-847-413-3362, using conference ID number
46090929. The replay of the call can be accessed by dialing
1-888-843-7419, using conference ID number 46090929. 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 November 25, 2017, the Company had a total of
1,558 stores, including 1,020 Bed Bath & Beyond stores in all
50 states, the District of
Columbia, Puerto Rico and
Canada, 280 stores under the names
of World Market, Cost Plus World Market or Cost Plus, 118 buybuy
BABY stores, 83 stores under the names Christmas Tree Shops,
Christmas Tree Shops andThat! or andThat!, and 57 stores under the
names Harmon, Harmon Face Values or Face Values. During the
fiscal third quarter, the Company opened two Bed Bath & Beyond
stores, three World Market stores, five buybuy BABY stores, two
andThat! stores, and two Harmon stores, and closed five Bed Bath
& Beyond stores and one buybuy Baby store. The joint
venture, to which the Company is a partner, 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 across all channels; pricing pressures;
liquidity; the ability to achieve anticipated cost savings, and to
not exceed anticipated costs, associated with organizational
changes; 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 establish and
profitably maintain the appropriate mix of digital and physical
presence in the markets it serves; the ability to assess and
implement technologies in support of the Company's development of
its omnichannel capabilities; 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; 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
|
|
Nine Months
Ended
|
|
|
|
November
25,
|
|
November
26,
|
|
November
25,
|
|
November
26,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,954,539
|
|
$
|
2,955,484
|
|
$
|
8,633,037
|
|
$
|
8,681,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
1,913,478
|
|
|
1,862,710
|
|
|
5,523,302
|
|
|
5,448,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
1,041,061
|
|
|
1,092,774
|
|
|
3,109,735
|
|
|
3,233,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
932,701
|
|
|
881,491
|
|
|
2,685,517
|
|
|
2,527,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
108,360
|
|
|
211,283
|
|
|
424,218
|
|
|
705,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
13,621
|
|
|
18,254
|
|
|
49,367
|
|
|
52,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
provision for income taxes
|
|
94,739
|
|
|
193,029
|
|
|
374,851
|
|
|
652,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
33,438
|
|
|
66,605
|
|
|
144,037
|
|
|
236,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
61,301
|
|
$
|
126,424
|
|
$
|
230,814
|
|
$
|
416,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share - Basic
|
$
|
0.44
|
|
$
|
0.86
|
|
$
|
1.65
|
|
$
|
2.78
|
Net earnings per
share - Diluted
|
$
|
0.44
|
|
$
|
0.85
|
|
$
|
1.64
|
|
$
|
2.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
|
138,418
|
|
|
147,643
|
|
|
139,872
|
|
|
149,842
|
Weighted average
shares outstanding - Diluted
|
|
138,790
|
|
|
148,583
|
|
|
140,381
|
|
|
150,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.150
|
|
$
|
0.125
|
|
$
|
0.450
|
|
$
|
0.375
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(in
thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
November
25,
|
|
November
26,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
453,103
|
|
$
|
473,006
|
|
Merchandise
inventories
|
|
3,199,669
|
|
|
3,268,569
|
|
Other current
assets
|
|
287,719
|
|
|
318,725
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
3,940,491
|
|
|
4,060,300
|
|
|
|
|
|
|
|
Long term investment
securities
|
|
107,709
|
|
|
86,404
|
Property and
equipment, net
|
|
1,840,959
|
|
|
1,769,061
|
Goodwill
|
|
716,283
|
|
|
709,400
|
Other
assets
|
|
583,436
|
|
|
580,306
|
|
|
|
|
|
|
|
|
|
$
|
7,188,878
|
|
$
|
7,205,471
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,455,355
|
|
$
|
1,621,432
|
|
Accrued expenses and
other current liabilities
|
|
584,121
|
|
|
581,640
|
|
Merchandise credit
and gift card liabilities
|
|
321,591
|
|
|
304,319
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
2,361,067
|
|
|
2,507,391
|
|
|
|
|
|
|
|
Deferred rent and
other liabilities
|
|
520,952
|
|
|
515,294
|
Income taxes
payable
|
|
66,061
|
|
|
76,316
|
Long term
debt
|
|
1,491,952
|
|
|
1,491,487
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,440,032
|
|
|
4,590,488
|
|
|
|
|
|
|
|
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 341,682 and 339,524, respectively;
outstanding 142,413 and 150,315 shares,
respectively
|
|
3,417
|
|
|
3,395
|
|
Additional paid-in
capital
|
|
2,039,213
|
|
|
1,956,594
|
|
Retained
earnings
|
|
11,170,287
|
|
|
10,753,801
|
|
Treasury stock, at
cost; 199,269 and 189,209 shares, respectively
|
|
(10,422,816)
|
|
|
(10,044,058)
|
|
Accumulated other
comprehensive loss
|
|
(41,255)
|
|
|
(54,749)
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
2,748,846
|
|
|
2,614,983
|
|
|
|
|
|
|
|
|
|
$
|
7,188,878
|
|
$
|
7,205,471
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
November
25,
|
|
November
26,
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
230,814
|
|
$
|
416,378
|
|
Adjustments to
reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
227,407
|
|
|
215,164
|
|
|
Stock-based
compensation
|
|
52,833
|
|
|
54,298
|
|
|
Deferred income
taxes
|
|
17,114
|
|
|
36,857
|
|
|
Other
|
|
(273)
|
|
|
(1,090)
|
|
|
Increase in assets,
net of effect of acquisitions:
|
|
|
|
|
|
|
|
Merchandise
inventories
|
|
(290,576)
|
|
|
(405,198)
|
|
|
Trading investment
securities
|
|
(17,806)
|
|
|
(15,345)
|
|
|
Other current
assets
|
|
(89,425)
|
|
|
(127,487)
|
|
|
Other assets
|
|
(5,034)
|
|
|
(10,289)
|
|
|
Increase (decrease)
in liabilities, net of effect of acquisitions:
|
|
|
|
|
|
|
|
Accounts payable
|
|
311,430
|
|
|
536,577
|
|
|
Accrued expenses and other
current liabilities
|
|
90,947
|
|
|
90,595
|
|
|
Merchandise credit and gift
card liabilities
|
|
11,926
|
|
|
6,408
|
|
|
Income taxes
payable
|
|
(61,626)
|
|
|
(73,055)
|
|
|
Deferred rent and other
liabilities
|
|
14,111
|
|
|
20,367
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
491,842
|
|
|
744,180
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemption of
held-to-maturity investment securities
|
|
-
|
|
|
86,240
|
|
Capital
expenditures
|
|
(263,963)
|
|
|
(276,436)
|
|
Investment in
unconsolidated joint venture
|
|
-
|
|
|
(3,318)
|
|
Payment for
acquisition, net of cash acquired
|
|
(6,097)
|
|
|
(200,477)
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(270,060)
|
|
|
(393,991)
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
exercise of stock options
|
|
10,161
|
|
|
20,258
|
|
Payment of deferred
financing costs
|
|
(430)
|
|
|
-
|
|
Payment of
dividends
|
|
(60,058)
|
|
|
(37,358)
|
|
Repurchase of common
stock, including fees
|
|
(207,277)
|
|
|
(375,541)
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(257,604)
|
|
|
(392,641)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
596
|
|
|
(115)
|
|
|
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
|
(35,226)
|
|
|
(42,567)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
Beginning of
period
|
|
488,329
|
|
|
515,573
|
|
End of
period
|
$
|
453,103
|
|
$
|
473,006
|
|
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.
|
View original
content:http://www.prnewswire.com/news-releases/bed-bath--beyond-inc-reports-results-for-fiscal-2017-third-quarter-300574133.html
SOURCE Bed Bath & Beyond Inc.