UNION, N.J., Jan. 7, 2016 /PRNewswire/ -- Bed Bath & Beyond Inc. (NASDAQ: BBBY) today reported financial results for the third quarter of fiscal 2015 ended November 28, 2015.

Fiscal 2015 Third Quarter and Nine Months Results

For the third quarter of fiscal 2015, the Company reported net earnings of $1.09 per diluted share ($177.8 million) compared with $1.23 per diluted share ($225.4 million) for the third quarter of fiscal 2014. On December 22, 2015, the Company announced revised net earnings estimates of $1.07 to $1.10 per diluted share for the fiscal third quarter of 2015. The third quarter year-over-year comparison of net earnings per diluted share was unfavorably impacted by approximately $0.13, based on the fiscal 2015 diluted weighted average shares outstanding, due to the following non-comparable items: a non-recurring credit card fee litigation settlement benefit that occurred in the third quarter of fiscal 2014; lower net after tax benefits in the third quarter of fiscal 2015 as compared to fiscal 2014 due to distinct tax events; and an unfavorable foreign currency rate impact in the third quarter of fiscal 2015.

For the third quarter of fiscal 2015, net sales were approximately $2.952 billion, an increase of approximately 0.3% from net sales of approximately $2.943 billion reported in the third quarter of fiscal 2014. Net sales on a constant currency basis (a non-GAAP measure) increased by approximately 0.7% for the third quarter of fiscal 2015. Comparable sales in the third quarter of fiscal 2015 decreased by approximately 0.4%, compared with an increase of approximately 1.7% in last year's fiscal third quarter. Comparable sales on a constant currency basis (a non-GAAP measure) were relatively flat for the third quarter of fiscal 2015. Comparable sales from customer facing digital channels grew in excess of 25% while comparable sales from stores declined in the low single-digit percentage range during the third quarter of fiscal 2015.

For the fiscal nine months ended November 28, 2015, the Company reported net earnings of $3.22 per diluted share ($537.9 million) compared with $3.31 per diluted share ($636.4 million) in the corresponding period a year ago. Net sales for the fiscal nine months of 2015 were approximately $8.686 billion, an increase of approximately 1.7% from net sales of approximately $8.545 billion in the corresponding period a year ago. Net sales on a constant currency basis increased by approximately 2.0% for the fiscal nine months. Comparable sales for the fiscal nine months of 2015 increased by approximately 0.8%, compared with an increase of approximately 1.9% in last year's fiscal nine months. Comparable sales on a constant currency basis increased by approximately 1.2% for the fiscal nine months of 2015. Comparable sales from customer facing digital channels grew approximately 30% while comparable sales from stores declined in the low single-digit percentage range during the fiscal nine months of 2015.

Share Repurchase Program

During the third quarter of fiscal 2015, the Company repurchased approximately $194 million of its common stock, representing approximately 3.3 million shares, under its existing share repurchase program. As of November 28, 2015, the remaining balance of the current $2.0 billion share repurchase program was approximately $110 million. The Company is modeling to complete its current share repurchase program during the fourth quarter of 2015 and commence repurchases under the new $2.5 billion authorization, approved by the Board of Directors in September 2015.

Fiscal 2015 Financial Model

The Company is now modeling comparable sales to be between relatively flat and an increase of approximately 2.0% for the fiscal 2015 fourth quarter which results in a range of approximately 0.6% to 1.1% for the fiscal full year. Net earnings per diluted share are modeled to be in the range of approximately $1.72 to $1.86 for the fiscal 2015 fourth quarter and approximately $4.91 to $5.05 for the fiscal full year. 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 2015 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. 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. 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, worldmarket.com, buybuybaby.com, christmastreeshops.com, harmondiscount.com, and ofakind.com. As of November 28, 2015, the Company had a total of 1,526 stores, including 1,022 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 276 stores under the names of World Market, Cost Plus World Market or Cost Plus, 100 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 five Bed Bath & Beyond stores, one buybuy BABY store and six Cost Plus World Market stores and closed six Bed Bath & Beyond stores. In addition, the Company is a partner in a joint venture which operates six stores in Mexico under the name Bed Bath & Beyond.

Non-GAAP Information

This press release contains certain non-GAAP information, such as net sales on a constant currency basis, which is intended to provide visibility into the Company's operations by excluding the effects of foreign currency exchange rate fluctuations.

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 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; 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 including, without limitation, changes to lease 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 28,                                     November 29,               November 28,                     November 29,

                                                                                                                2015                                           2014                                2015                      2014
                                                                                                                ----                                           ----                                ----                      ----



     Net sales                                                                                            $2,952,031                                                  $2,942,980                                      $8,685,995                      $8,544,583


     Cost of sales                                                                                         1,836,720                                                   1,814,006                                       5,385,601                       5,250,679



                                                   Gross profit                                                                             1,115,311                                        1,128,974                            3,300,394                      3,293,904


     Selling, general and administrative expenses                                        822,453                                                            776,291                                     2,384,073                           2,271,779



                                                   Operating profit                                                                           292,858                                          352,683                              916,321                      1,022,125


     Interest expense, net                                                                                    18,052                                                      19,569                                          63,006                          31,191



                                                    Earnings before provision for income
                                                    taxes                                                    274,806                                                     333,114                                         853,315                         990,934


     Provision for income taxes                                                           96,990                                                            107,706                                       315,370                             354,521



                                                   Net earnings                                                                              $177,816                                         $225,408                             $537,945                       $636,413
                                                                                                                                             ========                                         ========                             ========                       ========


     Net earnings per share - Basic                                                        $1.10                                                              $1.24                                         $3.26                               $3.34

     Net earnings per share - Diluted                                                      $1.09                                                              $1.23                                         $3.22                               $3.31


     Weighted average shares outstanding - Basic                                         162,005                                                            181,629                                       165,267                             190,292

     Weighted average shares outstanding - Diluted                                       163,582                                                            183,794                                       167,116                             192,463



                                                                                          BED BATH & BEYOND INC. AND SUBSIDIARIES

                                                                                                Consolidated Balance Sheets

                                                                                                 (in thousands, unaudited)


                                                                                                                                                       November 28,              November 29,

                                                                                                                                                               2015                       2014
                                                                                                                                                               ----                       ----


     Assets


     Current assets:

      Cash and cash equivalents                                                                                                                            $490,737                            $1,043,838

      Short term investment securities                                                                                                                          -                              134,993

      Merchandise inventories                                                                                                                             3,219,667                             3,065,774

      Other current assets                                                                                                                                  480,132                               487,387
                                                                                                                                                            -------                               -------


             Total current assets                                                                                                                         4,190,536                             4,731,992
                                                                                                                                                          ---------                             ---------


     Long term investment securities                                                                                                                         74,666                                94,876

     Property and equipment, net                                                                                                                          1,686,632                             1,601,208

     Goodwill                                                                                                                                                           487,166                              486,279

     Other assets                                                                                                                                                       404,992                              421,480



                                                                                                                                                                     $6,843,992                           $7,335,835
                                                                                                                                                                     ==========                           ==========


     Liabilities and Shareholders' Equity


     Current liabilities:

     Accounts payable                                                                                                                                    $1,402,968                            $1,309,002

     Accrued expenses and other current liabilities                                                                                            467,654                                 458,278

     Merchandise credit and gift card liabilities                                                                                              317,430                                 296,776

     Current income taxes payable                                                                                                                4,327                                  14,559
                                                                                                                                                 -----                                  ------


            Total current liabilities                                                                                                                     2,192,379                             2,078,615
                                                                                                                                                          ---------                             ---------


     Deferred rent and other liabilities                                                                                                                    504,469                               487,998

     Income taxes payable                                                                                                                                    81,390                                79,915

     Long term debt                                                                                                                                                   1,500,000                            1,500,000



            Total liabilities                                                                                                                             4,278,238                             4,146,528
                                                                                                                                                          ---------                             ---------


     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 337,554 and 336,276 shares, respectively;

       outstanding 163,587 and 185,601 shares, respectively                                                                             3,376                              3,363

     Additional paid-in capital                                                                                                                           1,866,071                             1,594,066

     Retained earnings                                                                                                                                   10,091,321                             9,232,315

      Treasury stock, at cost; 173,967 and 150,675 shares,
      respectively                                                                                                                (9,341,450)                       (7,621,286)

     Accumulated other comprehensive loss                                                                                                     (53,564)                               (19,151)
                                                                                                                                               -------                                 -------


     Total shareholders' equity                                                                                                                           2,565,754                             3,189,307



                                                                                                                                                                     $6,843,992                           $7,335,835
                                                                                                                                                                     ==========                           ==========



     Certain reclassifications have been made to the fiscal 2014 balance sheet to conform

                  to the fiscal 2015 consolidated balance sheet presentation.

                                                                                                             BED BATH & BEYOND INC. AND SUBSIDIARIES

                                                                                                              Consolidated Statements of Cash Flows

                                                                                                                    (in thousands, unaudited)


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


                                                                                                                                                                                      November 28,               November 29,

                                                                                                                                                                                                 2015                     2014
                                                                                                                                                                                                 ----                     ----



     Cash Flows from Operating Activities:


     Net earnings                                                                                                                                                                            $537,945                            $636,413

     Adjustments to reconcile net earnings to net cash

                                                           provided by operating activities:

                                                           Depreciation and amortization                                                                                  193,633                                      179,466

                                                           Stock-based compensation                                                                                        49,848                                       49,284

                                                            Excess tax benefit from stock-based
                                                            compensation                                                                                       (10,380)                                (11,127)

                                                           Deferred income taxes                                                                                                               22,848                            (27,247)

                                                           Other                                                                                                                                            740                           (1,399)

                                                           Increase in assets:

                                                                Merchandise inventories                                                                                 (493,054)                                    (489,198)

                                                                Trading investment securities                                                                   (6,300)                                 (7,364)

                                                                Other current assets                                                                                    (124,143)                                    (105,683)

                                                                Other assets                                                                                                                  (6,611)                            (1,064)

                                                           Increase (decrease) in liabilities:

                                                                Accounts payable                                                                                                              288,304                             236,450

                                                                Accrued expenses and other current
                                                                 liabilities                                                                                     64,986                                   72,479

                                                                Merchandise credit and gift card liabilities                                                     11,584                                   12,709

                                                                Income taxes payable                                                                                     (60,933)                                    (48,017)

                                                                Deferred rent and other liabilities                                                              21,465                                    6,475
                                                                                                                                                                 ------                                    -----


     Net cash provided by operating activities                                                                                                         489,932                                 502,177
                                                                                                                                                       -------                                 -------


     Cash Flows from Investing Activities:


     Purchase of held-to-maturity investment securities                                                                                               (16,873)                              (219,353)

      Redemption of held-to-maturity investment
      securities                                                                                                                                       126,875                                 573,750

      Redemption of available-for-sale investment
      securities                                                                                                                                        28,905                                       -

     Capital expenditures                                                                                                                                               (244,255)                                    (232,658)
                                                                                                                                                                         --------                                     --------


     Net cash (used in) provided by investing activities                                                                                             (105,348)                                121,739
                                                                                                                                                      --------                                 -------


     Cash Flows from Financing Activities:


     Proceeds from exercise of stock options                                                                                                             7,879                                  24,790

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

     Payment of deferred financing costs                                                                                                                                      -                                    (10,092)

     Prepayment under share repurchase agreement                                                                                                             -                              (165,000)

     Payment of other liabilities                                                                                                                                         (7,646)                                                    -

     Excess tax benefit from stock-based compensation                                                                                                   10,380                                  11,127

     Repurchase of common stock, including fees                                                                                                      (773,518)                            (1,303,951)
                                                                                                                                                      --------                              ----------


     Net cash (used in) provided by financing activities                                                                                             (762,905)                                 56,874
                                                                                                                                                      --------                                  ------


      Effect of exchange rate changes on cash and cash
      equivalents                                                                                                           (6,516)                                       (3,468)
                                                                                                                             ------                                         ------


      Net (decrease) increase in cash and cash
      equivalents                                                                                                                                    (384,837)                                677,322


     Cash and cash equivalents:

     Beginning of period                                                                                                                                                  875,574                                      366,516
                                                                                                                                                                          -------                                      -------

     End of period                                                                                                                                                                           $490,737                          $1,043,838
                                                                                                                                                                                             ========                          ==========



                          Certain reclassifications have been made to the fiscal 2014 cash flows to conform

                                       to the fiscal 2015 consolidated cash flows presentation.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bed-bath--beyond-inc-reports-results-for-fiscal-2015-third-quarter-300201214.html

SOURCE Bed Bath & Beyond Inc.