UNION, N.J., Jan. 8, 2015 /PRNewswire/ -- Bed Bath & Beyond Inc. today reported financial results for the third quarter and nine months of fiscal 2014 ended November 29, 2014.

Third Quarter and Nine Months of Fiscal 2014 Results

For the third quarter of fiscal 2014, the Company reported net earnings of $1.23 per diluted share ($225.4 million) compared with net earnings for the fiscal third quarter of 2013 of $1.12 per diluted share ($237.2 million). Net earnings per diluted share for the third quarter of fiscal 2014 includes approximately $.04 of net benefits for certain non-recurring items, including credit card fee litigation. Net sales for the fiscal third quarter of 2014 were approximately $2.943 billion, an increase of approximately 2.7% from net sales of approximately $2.865 billion reported in the fiscal third quarter of 2013. Comparable sales in the fiscal third quarter of 2014 increased by approximately 1.7%, compared with an increase of approximately 1.3% in last year's fiscal third quarter.

For the fiscal nine months ended November 29, 2014, the Company reported net earnings of $3.31 per diluted share ($636.4 million) compared with $3.20 per diluted share ($689.0 million) in the corresponding period a year ago. Net sales for the fiscal nine months of 2014 were approximately $8.545 billion, an increase of approximately 2.9% from net sales of approximately $8.301 billion in the corresponding period a year ago. Comparable sales for the fiscal nine months of 2014 increased by approximately 1.9%, compared with an increase of approximately 2.7% in last year's fiscal nine months.

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.

Share Repurchase Program

The $1.1 billion accelerated share repurchase program which commenced in July 2014 was completed in December 2014. As of November 29, 2014, the remaining balance of the $2.0 billion share repurchase program was approximately $1.8 billion.

Fiscal 2014 Financial Model

The Company continues to model net earnings per diluted share to be approximately $1.78 to $1.83 for the fiscal fourth quarter of 2014, and now models net earnings per diluted share to be approximately $5.05 to $5.09 for the fiscal full year. The timing and amount of the Company's share repurchases impacts the quarterly and full year diluted weighted average shares outstanding differently with the impact on the individual quarters being greater than the impact on the full year. Therefore, the sum of the net earnings per diluted share for the four fiscal quarters of the year, representing the three fiscal quarters already reported, and the estimated net earnings per diluted share for the fiscal fourth quarter, is greater than the estimated fiscal full year net earnings per diluted share by approximately six to seven cents. The modeling of net earnings per diluted share is based upon a number of assumptions which will be described in the Company's third 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.

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 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. Additionally, the Company is a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond. 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.

The Company operates websites at bedbathandbeyond.com, christmastreeshops.com, harmondiscount.com, buybuybaby.com and worldmarket.com. As of November 29, 2014, the Company had a total of 1,510 stores, including 1,019 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 270 stores under the names of World Market, Cost Plus World Market or Cost Plus, 93 buybuy BABY stores, 78 stores under the names Christmas Tree Shops, Christmas Tree Shops andThat! or andThat!, and 50 stores under the names Harmon or Harmon Face Values. During the fiscal third quarter, the Company opened four Bed Bath & Beyond stores, one buybuy BABY store, and one Cost Plus World Market store and closed two Bed Bath & Beyond stores. 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.

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 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; 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; 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                 Nine Months Ended
                                                     ------------------                  -----------------


                                                         November 29,                 November 30,                 November 29,                     November 30,

                                                                    2014                       2013                                  2014                      2013
                                                                    ----                       ----                                  ----                      ----



     Net sales                                                $2,942,980                              $2,864,837                                        $8,544,583                      $8,300,649


     Cost of sales                                             1,814,006                               1,743,147                                         5,250,679                       5,032,504



                           Gross profit                                  1,128,974                                             1,121,690                            3,293,904                      3,268,145


      Selling, general and
      administrative
      expenses                               776,291                                        747,043                                       2,271,779                           2,180,631



                           Operating profit                                352,683                                               374,647                            1,022,125                      1,087,514


      Interest (expense)
      income, net                           (19,569)                                          1,314                                        (31,191)                              (586)



      Earnings
                            before
                            provision
                            for income
                            taxes                                333,114                                 375,961                                           990,934                       1,086,928


      Provision for income
      taxes                                  107,706                                        138,764                                         354,521                             397,937



                           Net earnings                                   $225,408                                              $237,197                             $636,413                       $688,991
                                                                          ========                                              ========                             ========                       ========


      Net earnings per
      share -Basic                             $1.24                                          $1.13                                           $3.34                               $3.24

      Net earnings per
      share -Diluted                           $1.23                                          $1.12                                           $3.31                               $3.20


      Weighted average
      shares outstanding
      -Basic                                 181,629                                        209,704                                         190,292                             212,430

      Weighted average
      shares outstanding
      -Diluted                               183,794                                        212,315                                         192,463                             215,116

                           BED BATH & BEYOND INC. AND SUBSIDIARIES

                                 Consolidated Balance Sheets

                                  (in thousands, unaudited)


                                              November 29,                    November 30,

                                                      2014                             2013
                                                      ----                             ----


     Assets


      Current
      assets:

      Cash and cash
       equivalents                              $1,043,838                                    $471,064

      Short term
       investment
       securities                   134,993                                         223,114

      Merchandise
       inventories                               3,065,774                                   2,881,561

      Other current
       assets                                      511,228                                     478,865
                                                   -------                                     -------


             Total current
              assets                             4,755,833                                   4,054,604
                                                 ---------                                   ---------


      Long term
      investment
      securities                                    94,876                                      87,021

      Property and
      equipment, net                             1,601,208                                   1,523,253

     Goodwill                                                         486,279                             486,279

     Other assets                                                     397,639                             393,332



                                                                   $7,335,835                          $6,544,489
                                                                   ==========                          ==========


      Liabilities and
      Shareholders' Equity


      Current
      liabilities:

      Accounts
      payable                                   $1,309,002                                  $1,145,281

      Accrued expenses
      and other
      current
      liabilities                   458,278                                         417,073

      Merchandise
      credit and gift
      card
      liabilities                   296,776                                         267,332

      Current income
      taxes payable                  14,559                                             807
                                     ------                                             ---


            Total current
             liabilities                         2,078,615                                   1,830,493
                                                 ---------                                   ---------


      Deferred rent and
      other liabilities                            487,998                                     493,845

      Income taxes
      payable                                       79,915                                      90,323

     Long term debt                                                 1,500,000                                   -



            Total
             liabilities                         4,146,528                                   2,414,661
                                                 ---------                                   ---------


      Total
      shareholders'
      equity                                     3,189,307                                   4,129,828



                                                                   $7,335,835                          $6,544,489
                                                                   ==========                          ==========

                                                     BED BATH & BEYOND INC. AND SUBSIDIARIES

                                                      Consolidated Statements of Cash Flows

                                                            (in thousands, unaudited)


                                                                                       Nine Months Ended
                                                                                      -----------------


                                                                                         November 29,               November 30,

                                                                                                    2014                     2013
                                                                                                    ----                     ----



     Cash Flows from
     Operating
     Activities:


     Net
     earnings                                                                                   $636,413                          $688,991

     Adjustments to
     reconcile net
     earnings to net
     cash

                           provided by
                           operating
                           activities:

                           Depreciation
                           and
                           amortization                                     178,742                                       160,672

                           Stock-based
                           compensation                                      49,284                                        42,078

                           Tax benefit from
                           stock-based
                           compensation                           6,540                                      12,676

                           Deferred
                           income
                           taxes                                                                (27,190)                            6,275

                          Other                                                                            (1,399)                         (1,007)

                           Increase in
                           assets, net of
                           effect of
                           acquisitions:

                               Merchandise
                                inventories                               (486,818)                                     (415,347)

                               Trading
                                investment
                                securities                      (7,364)                                   (10,702)

                               Other current
                                assets                                    (105,446)                                     (101,907)

                               Other
                                assets                                                           (1,058)                          (5,478)

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

                               Accounts
                                payable                                                          235,982                           244,761

                               Accrued expenses
                                and other
                                current
                                liabilities                      66,246                                      24,301

                               Merchandise
                                credit and gift
                                card liabilities                 12,560                                      15,851

                               Income taxes
                                payable                                    (58,438)                                     (66,284)

                               Deferred rent and
                                other
                                liabilities                       6,143                                       7,056
                                                                  -----                                       -----


     Net cash provided by
     operating
     activities                                      504,197                                      601,936
                                                     -------                                      -------


     Cash Flows from
     Investing
     Activities:


     Purchase of held-
     to-maturity
     investment
     securities                                    (219,353)                                   (682,339)

     Redemption of held-
     to-maturity
     investment
     securities                                      573,750                                      909,375

     Capital
     expenditures                                                         (230,993)                                     (228,928)

     Investment in
     unconsolidated
     joint venture                                                            -                                      (3,436)
                                                                            ---                                       ------


     Net cash provided by
     (used in) investing
     activities                                      123,404                                      (5,328)
                                                     -------                                       ------


     Cash Flows from
     Financing
     Activities:


     Proceeds from
     exercise of stock
     options                                          24,790                                       54,431

     Proceeds from
     issuance of senior
     unsecured notes                               1,500,000                                            -

     Payment of
     deferred
     financing costs                                           (10,092)                                           -

     Prepayment under
     share repurchase
     agreement                                     (165,000)                                           -

     Excess tax benefit
     from stock-based
     compensation                                      3,974                                        7,293

     Repurchase of common
     stock, including
     fees                                        (1,303,951)                                    (752,239)
                                                  ----------                                     --------


     Net cash provided by
     (used in) financing
     activities                                       49,721                                    (690,515)
                                                      ------                                     --------


     Net increase
     (decrease) in cash
     and cash
     equivalents                                     677,322                                     (93,907)


     Cash and cash
     equivalents:

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

     End of
     period                                                                                   $1,043,838                          $471,064
                                                                                              ==========                          ========

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SOURCE Bed Bath & Beyond Inc.