UNION, N.J., June 25, 2014 /PRNewswire/ -- Bed Bath & Beyond Inc. today reported net earnings of $.93 per diluted share ($187.1 million) in the fiscal first quarter ended May 31, 2014, compared with net earnings for the fiscal first quarter of 2013 of $.93 per diluted share ($202.5 million). Net sales for the fiscal first quarter of 2014 were approximately $2.657 billion, an increase of approximately 1.7% from net sales of approximately $2.612 billion reported in the fiscal first quarter of 2013. Comparable sales in the fiscal first quarter of 2014 increased by approximately 0.4%, compared with an increase of approximately 3.4% in last year's fiscal first quarter.

During the fiscal first quarter of 2014, the Company repurchased approximately $273 million of its common stock, representing approximately 4.2 million shares. As of May 31, 2014, the remaining balance of the existing share repurchase program authorized in December 2012 was approximately $861 million.

The Company is modeling net earnings per diluted share to be approximately $1.08 to $1.16 for the fiscal second quarter of 2014 and, consistent with the prior estimate, to increase by a mid-single digit percentage for all of fiscal 2014. The modeling of net earnings per diluted share is based upon a number of assumptions which will be described in the Company's first quarter of fiscal 2014 conference call. Information regarding access to the call is available in the Investor Relations section of the Company's website, www.bedbathandbeyond.com.

Cost Plus World Market was excluded from the comparable sales calculations through the end of the fiscal first half of 2013 and is included beginning with the fiscal third quarter of 2013. Linen Holdings is excluded from the comparable sales calculations and will continue to be excluded on an ongoing basis because it represents non-retail activity.

As of May 31, 2014, the Company had a total of 1,500 stores, including 1,015 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 266 stores under the names of World Market, Cost Plus World Market or Cost Plus, 91 buybuy BABY stores, 78 stores under the names of Christmas Tree Shops, Christmas Trees Shops andThat! or andThat!, and 50 stores under the names of Harmon or Harmon Face Values. During the fiscal first quarter, the Company opened two Bed Bath & Beyond stores, one buybuy Baby store, one andThat! store and one Cost Plus World Market store, as well as closed one Bed Bath & Beyond store. Consolidated store space, net of openings and closings for all our concepts, as of May 31, 2014 was approximately 42.7 million square feet. Since the beginning of the fiscal second quarter of 2014 on June 1, 2014, one Bed Bath & Beyond store, one buybuy Baby store and two Cost Plus World Market stores have been opened. In addition, the Company is a partner in a joint venture which operates five stores in the Mexico City market under the name Bed Bath & Beyond.

Bed Bath & Beyond Inc. and subsidiaries (the "Company") is a retailer which operates under the names Bed Bath & Beyond, Christmas Tree Shops, Christmas Tree Shops andThat! or andThat!, Harmon or Harmon 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 or through a mobile device. The Company has the developing ability to have customer purchases picked up in store or shipped direct to the customer from the Company's distribution facilities, stores or vendors. 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, food service, healthcare and other industries. The Company is also a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond. The Company sells a wide assortment of domestics merchandise and home furnishings. Domestics merchandise includes categories such as bed linens and related items, bath items and kitchen textiles. Home furnishings include categories such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and certain juvenile products. Shares of Bed Bath & Beyond Inc. are traded on NASDAQ under the symbol "BBBY" and are included in the Standard and Poor's 500 and Global 1200 Indices and the NASDAQ-100 Index. The Company is counted among the Fortune 500 and the Forbes 2000.

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 and spending habits; 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; the ability to attract and retain qualified employees in all areas of the organization; the cost of labor, merchandise and other costs and expenses; the ability to find suitable locations at acceptable occupancy costs and other terms to support the Company's expansion program; the ability to assess and implement technologies in support of the Company's development of its omnichannel capabilities; 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; 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 including, without limitation, changes to lease accounting standards; 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 31,                           June 1,

                                                                 2014                         2013
                                                                 ----                         ----



     Net sales                                             $2,656,698                              $2,612,140


     Cost of sales                                          1,625,813                               1,579,169



                       Gross profit                                             1,030,885                     1,032,971


      Selling, general
      and
      administrative
      expenses                          730,184                                            709,870



                       Operating profit                                           300,701                       323,101


      Interest
      expense, net                                              2,094                                     225



      Earnings
                        before
                        provision
                        for income
                        taxes                                 298,607                                 322,876


      Provision for
      income taxes                      111,555                                            120,386



                       Net earnings                                              $187,052                      $202,490
                                                                                 ========                      ========


      Net earnings per
      share -Basic                        $0.94                                              $0.94

      Net earnings per
      share -Diluted                      $0.93                                              $0.93


      Weighted average
      shares
      outstanding -
      Basic                             199,619                                            215,451

      Weighted average
      shares
      outstanding -
      Diluted                           202,096                                            218,335



                           BED BATH & BEYOND INC. AND SUBSIDIARIES

                                 Consolidated Balance Sheets

                                  (in thousands, unaudited)


                                               May 31,                        June 1,

                                                    2014                          2013
                                                    ----                          ----


     Assets


      Current
      assets:

      Cash and cash
       equivalents                              $536,568                                $439,850

      Short term
       investment
       securities                   176,242                                    481,804

      Merchandise
       inventories                             2,699,722                               2,540,723

      Other current
       assets                                    422,717                                 412,772
                                                 -------                                 -------


             Total current
              assets                           3,835,249                               3,875,149
                                               ---------                               ---------


      Long term
      investment
      securities                                  89,746                                  80,868

      Property and
      equipment, net                           1,559,880                               1,469,757

     Goodwill                                                         486,279                       486,279

     Other assets                                                     391,174                       400,595



                                                                   $6,362,328                    $6,312,648
                                                                   ==========                    ==========


      Liabilities and
      Shareholders' Equity


      Current
      liabilities:

      Accounts
      payable                                 $1,108,449                                $977,297

      Accrued expenses
      and other
      current
      liabilities                   369,039                                    367,116

      Merchandise
      credit and gift
      card
      liabilities                   290,055                                    262,945

      Current income
      taxes payable                 120,039                                    126,750
                                    -------                                    -------


            Total current
             liabilities                       1,887,582                               1,734,108
                                               ---------                               ---------


      Deferred rent and
      other liabilities                          489,334                                 493,674

      Income taxes
      payable                                     91,065                                  79,815



            Total
             liabilities                       2,467,981                               2,307,597
                                               ---------                               ---------


      Total
      shareholders'
      equity                                   3,894,347                               4,005,051



                                                                   $6,362,328                    $6,312,648
                                                                   ==========                    ==========

                                                                                                           BED BATH & BEYOND INC. AND SUBSIDIARIES

                                                                                                            Consolidated Statements of Cash Flows

                                                                                                                  (in thousands, unaudited)


                                                                                                                                                                                  Three Months Ended
                                                                                                                                                                                 ------------------


                                                                                                                                                                                        May 31,                  June 1,

                                                                                                                                                                                                2014                  2013
                                                                                                                                                                                                ----                  ----



     Cash Flows from Operating Activities:


     Net earnings                                                                                                                                                                           $187,052                        $202,490

     Adjustments to reconcile net earnings to net cash

                                                       provided by operating activities:

                                                       Depreciation                                                                                                                           58,371                          52,697

                                                       Stock-based compensation                                                                                           18,162                                    14,803

                                                       Tax benefit from stock-based compensation                                                                 5,913                                    10,213

                                                       Deferred income taxes                                                                                                                (21,855)                       (17,229)

                                                       Other                                                                                                                                              (298)                      (302)

                                                        Increase in assets, net of effect of
                                                        acquisitions:

                                                            Merchandise inventories                                                                                    (120,766)                                 (74,509)

                                                            Trading investment securities                                                                      (2,293)                                  (3,911)

                                                            Other current assets                                                                                        (22,331)                                 (24,518)

                                                            Other assets                                                                                                                     (1,780)                        (3,898)

                                                        Increase (decrease) in liabilities, net of effect
                                                        of acquisitions:

                                                            Accounts payable                                                                                                                  33,712                          73,497

                                                            Accrued expenses and other current liabilities                                                    (13,444)                                 (22,018)

                                                            Merchandise credit and gift card liabilities                                                         5,839                                    11,464

                                                            Income taxes payable                                                                                          58,192                                    49,151

                                                            Deferred rent and other liabilities                                                                  2,456                                     4,566
                                                                                                                                                                 -----                                     -----


     Net cash provided by operating activities                                                                                                       186,930                                  272,496
                                                                                                                                                     -------                                  -------


     Cash Flows from Investing Activities:


      Purchase of held-to-maturity investment
      securities                                                                                                                                    (39,369)                               (369,268)

      Redemption of held-to-maturity investment
      securities                                                                                                                                     352,500                                  337,500

     Capital expenditures                                                                                                                                               (67,918)                                 (64,966)
                                                                                                                                                                         -------                                   -------


      Net cash provided by (used in) investing
      activities                                                                                                                                     245,213                                 (96,734)
                                                                                                                                                     -------                                  -------


     Cash Flows from Financing Activities:


     Proceeds from exercise of stock options                                                                                                           9,705                                   22,469

     Excess tax benefit from stock-based compensation                                                                                                  1,087                                    1,084

     Repurchase of common stock, including fees                                                                                                    (272,883)                               (324,436)
                                                                                                                                                    --------                                 --------


     Net cash used in financing activities                                                                                                                   (262,091)                                (300,883)
                                                                                                                                                              --------                                  --------


      Net increase (decrease) in cash and cash
      equivalents                                                                                                                                    170,052                                (125,121)


     Cash and cash equivalents:

     Beginning of period                                                                                                                                                 366,516                                   564,971
                                                                                                                                                                         -------                                   -------

     End of period                                                                                                                                                                          $536,568                        $439,850
                                                                                                                                                                                            ========                        ========

SOURCE Bed Bath & Beyond Inc.