Bed Bath & Beyond Inc. Reports Results For Fiscal 2016 Third Quarter

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. 

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SOURCE Bed Bath & Beyond