Upcoming AWS Coverage on Haverty Furniture Cos.

LONDON, UK / ACCESSWIRE / January 3, 2017 / Active Wall St. announces its post-earnings coverage on Bed Bath & Beyond Inc. (NASDAQ: BBBY). The Company released its third quarter fiscal 2016 financial results on December 21, 2016. The home goods retailer announced earnings and a forecast that was below market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Bed Bath & Beyond's competitors within the Home Furnishing Stores space, Haverty Furniture Cos., Inc. (NYSE: HVT), is estimated to report earnings on February 22, 2017. AWS will be initiating a research report on Haverty Furniture in the coming days.

Today, AWS is promoting its earnings coverage on BBBY; touching on HVT. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=BBBY

http://www.activewallst.com/registration-3/?symbol=HVT

Earnings Reviewed

For the three months ended November 26, 2016, Bed Bath & Beyond reported net sales of approximately $2.955 billion, an increase of approximately 0.1% from net sales of approximately $2.952 billion reported in Q3 FY15. The marginal increase was primarily due to a 1.5% increase in non-comp sales, including One Kings Lane and new stores. The revenue numbers were partially offset by a 1.4% decrease in comparable sales.

Comparable sales from its customer-facing digital channels grew in excess of 20% while comparable sales from stores declined in the low single-digit percentage range during Q3 FY16. Bed Bath & Beyond stated that the decline in comp sales was attributed to a decrease in the number of transactions in the Company's stores, which was partially offset by an increase in the average transaction amount. The Company's sales numbers came in below market estimates of $3 billion.

Bed Bath & Beyond reported net earnings of $126.4 million, or $0.85 per diluted share for Q3 FY16 compared to $177.8 million, or $1.09 per diluted share, for Q3 FY15. The Company's earnings numbers also missed Wall Street's estimates of $0.98 per share.

Operating Metrics

For Q3 FY16, Bed Bath & Beyond's gross margin was approximately 37% compared to approximately 37.8% in the prior year's period. This decrease as a percentage of net sales was primarily due to an increase in net direct-to-customer shipping expense as a result of more promotional shipping offer activity, including a change in the Bed Bath & Beyond free shipping thresholds from $49 last year to $29 this year. The margin was also impacted by a rise in coupon expense resulting from increases in redemption and the average coupon amount. The inclusion of One Kings Lane reduced total Company gross margin as a percentage of net sales by approximately 13 basis points in Q3 FY16.

The Company's SG&A for the reported quarter was approximately 29.8% of net sales compared to 27.9% of net sales in the prior year's comparable period. Bed Bath & Beyond's income tax rate for Q3 FY16 was approximately 34.5% compared to approximately 35.3% in the prior year's corresponding period.

Balance Sheet

Bed Bath & Beyond ended Q3 FY16 with approximately $559 million in cash and cash equivalents and investment securities. Retail inventories were approximately $3.2 billion at cost, an increase of approximately 1.4% compared to the end of the prior year's same period due in part to the growth in inventory in its distribution facilities for shipments to customers as well as the inventory balances from PMall and One Kings Lane. Capital expenditures for the nine months of 2016 were approximately $276 million.

Bed Bath & Beyond's Board of Directors 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 Q3 FY16, 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 sometimes in fiscal 2020.

Store Info

During Q3 FY16, Bed Bath & Beyond opened ten new stores, including five Bed Bath & Beyond stores, four of which were in Canada; four buybuy BABY stores, three of which were in Canada; and one Face Values store. The Company also closed eight Bed Bath & Beyond stores during the reported quarter. On an YTD basis, Bed Bath & Beyond has opened a total of 27 stores and have closed nine stores.

Outlook

For FY16, Bed Bath & Beyond is expecting earnings per diluted share to be at the low end of the $4.50 to $5.00 range it announced earlier. Analysts have forecasted FY16 earnings of $4.73 per share.

Stock Performance

At the close of trading session on Friday, December 30th, 2016, Bed Bath & Beyond's share price finished the trading session at $40.64, slightly sliding 0.56%. A total volume of 1.94 million shares exchanged hands. The stock is trading at a PE ratio of 8.70 and has a dividend yield of 1.23%. The company's shares currently have a market cap of $6.22 billion.

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SOURCE: Active Wall Street