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.