Bed Bath & Beyond Inc. Reports Results For Fiscal Third Quarter

       Bed Bath & Beyond Inc. Reports Results For Fiscal Third Quarter

- Net Earnings per Diluted Share of $1.03

- Quarterly Net Sales Increase by Approximately 15.3%

- Quarterly Comparable Store Sales Increase by Approximately 1.7%

- Board of Directors Authorizes a New $2.5 Billion Share Repurchase Program

- Modeling Fiscal Fourth Quarter 2012 Net Earnings per Diluted Share of
Approximately $1.60 to $1.67

- Modeling Full Year Net Earnings per Diluted Share to Increase by
Approximately 10% to 12%, Consistent with Prior Estimates

PR Newswire

UNION, N.J., Dec. 19, 2012

UNION, N.J., Dec. 19, 2012 /PRNewswire/ --Bed Bath & Beyond Inc. today
reported net earnings of $1.03 per diluted share ($232.8 million) in the
fiscal third quarter ended November 24, 2012, an increase of approximately
8.4% versus net earnings of $.95 per diluted share ($228.5 million) in the
same quarter a year ago. Net sales for the fiscal third quarter of 2012 were
approximately $2.702 billion, an increase of approximately 15.3% from net
sales of approximately $2.344 billion reported in the fiscal third quarter of
2011. Comparable store sales in the fiscal third quarter of 2012 increased by
approximately 1.7%, compared with an increase of approximately 4.1% in last
year's fiscal third quarter. The Company estimates that the impact of
Hurricane Sandy reduced its comparable store sales percentage during the
fiscal third quarter by approximately 0.9%.

The Company is pleased to announce that its Board of Directors has authorized
a new $2.5 billion share repurchase program. The Company is currently
planning that the new share repurchase program will commence after completion
of the existing share repurchase program.During the fiscal third quarter of
2012, the Company repurchased approximately $191 million of its common stock,
representing approximately 3.1 million shares, under its existing share
repurchase program authorized in December 2010. As of November 24, 2012, the
remaining balance of the existing share repurchase program was approximately
$223 million. Since 2004 through the fiscal third quarter of 2012, the
Company has returned approximately $4.7 billion to our shareholders through
share repurchases.

"Our Board authorized this new share repurchase program based upon its
continued confidence in our Company's long-term growth potential, financial
outlook and cash flow generation," said Steven Temares, Chief Executive
Officer and Member of the Board of Directors. "It is anticipated that this
$2.5 billion share repurchase program will be funded from current cash and
future cash flows. That said, our Company's Board of Directors continues to
review our capital structure on an ongoing basis. In addition to providing
value to our shareholders through share repurchase programs, our strong
operations should allow us to continue to invest in our infrastructure and
maintain our flexibility to take advantage of opportunities as they may
arise."

For the fiscal nine months ended November 24, 2012, the Company reported net
earnings of $2.89 per diluted share ($663.9 million), an increase of
approximately 11.2% over net earnings of $2.60 per diluted share ($638.5
million) in the corresponding period a year ago. Net sales for the fiscal
nine months of 2012 were approximately $7.513 billion, an increase of
approximately 11.0% from net sales of approximately $6.768 billion in the
corresponding period a year ago. Comparable store sales for the fiscal nine
months of 2012 increased by approximately 2.7%, compared with an increase of
approximately 5.5% in last year's fiscal nine months.

The Company is modeling net earnings per diluted share to be approximately
$1.60 to $1.67 for the fiscal fourth quarter of 2012 and, consistent with
prior estimates, to be approximately $4.48 to $4.54 for all of fiscal 2012,
which will be 53 weeks and includes World Market and Linen Holdings from the
date of each acquisition to the end of the fiscal year. The modeling of net
earnings per diluted share is based upon a number of planning assumptions
which will be described in the Company's third quarter of fiscal 2012
conference call. Information regarding access to the call is available in the
Investor Relations section of the Company's website, www.bedbathandbeyond.com.

The accompanying consolidated financial information includes the accounts of
Linen Holdings since the date of its acquisition on June 1, 2012 and Cost
Plus, Inc. ("World Market") since the date of its acquisition on June 29,
2012. Linen Holdings, a business-to-business distributor, is excluded from
the comparable store sales calculations and will continue to be excluded on an
ongoing basis as long as it does not meet the Company's definition of
comparable store sales. World Market is excluded from the comparable store
sales calculations for the fiscal third quarter and nine months of 2012, and
will continue to be excluded from the comparable store sales calculations
until after the anniversary of the acquisition.

As of November 24, 2012, the Company had a total of 1,466 stores, including
1,003 Bed Bath & Beyond stores in all 50 states, the District of Columbia,
Puerto Rico and Canada, 264 stores under the names of World Market, Cost Plus
World Market, or World Market Stores, 74 stores under the names of Christmas
Tree Shops or andThat!, 78 buybuy BABY stores and 47 stores under the names of
Harmon or Harmon Face Values. During the fiscal third quarter, the Company
opened four Bed Bath & Beyond stores, seven buybuy BABY stores, six World
Market stores and one andThat! store while closing one Bed Bath & Beyond
store. Consolidated store space as of November 24, 2012 was approximately 41.9
million square feet. Since the beginning of the fourth quarter of fiscal 2012
on November 25, 2012, one Bed Bath & Beyond store and two buybuyBABY stores
have been opened. In addition, the Company is a partner in a joint venture
which operates two stores in the Mexico City market under the name "Home &
More."

Bed Bath & Beyond Inc. and subsidiaries (the "Company") operates a chain of
retail stores under the names of Bed Bath & Beyond, World Market, Cost Plus
World Market, World Market Stores, Christmas Tree Shops, andThat!, Harmon,
Harmon Face Values and buybuy BABY. The Company is also a partner in a joint
venture which operates retail stores in Mexico under the name "Home & More."
Through its retail stores, 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. Additionally, the Company includes Linen Holdings, a
business-to-business distributor of a variety of textile products, amenities
and other goods to customers in the hospitality, cruise line, food service,
healthcare and other industries. 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
associates 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 impact of failed auctions for auction rate securities held by the
Company; uncertainty in financial markets; disruptions to the Company's
information technology systems including but not limited to security breaches
of the Company's systems protecting consumer and employee information;
reputational risk arising from the acts of third parties; changes to
statutory, regulatory and legal requirements; 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    November    November    November
                           24,         26,         24,         26,
                           2012         2011         2012         2011
 Net sales                 $ 2,701,801  $ 2,343,561  $ 7,513,108  $ 6,767,576
 Cost of sales               1,627,791    1,384,868    4,519,230    4,000,312
    Gross profit             1,074,010    958,693      2,993,878    2,767,264
 Selling, general and        712,361      601,673      1,953,694    1,749,660
 administrative expenses
    Operating profit         361,649      357,020      1,040,184    1,017,604
 Interest expense, net       (3,122)      (602)        (3,909)      (1,922)
    Earnings before
    provision for income     358,527      356,418      1,036,275    1,015,682
    taxes
 Provision for income        125,777      127,874      372,359      377,188
 taxes
    Net earnings           $ 232,750    $ 228,544    $ 663,916    $ 638,494
 Net earnings per share -  $ 1.04       $ 0.96       $ 2.93       $ 2.64
 Basic
 Net earnings per share -  $ 1.03       $ 0.95       $ 2.89       $ 2.60
 Diluted
 Weighted average shares     223,687      237,802      226,362      242,033
 outstanding - Basic
 Weighted average shares     226,661      241,718      229,551      246,019
 outstanding - Diluted



BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
                                                  November 24,  November 26,
                                                  2012           2011
 Assets
 Current assets:
             Cash and cash equivalents           $  672,262     $  765,750
             Short term investment securities       112,450        761,930
             Merchandise inventories                2,763,907      2,357,254
             Other current assets                   419,234        405,950
              Total current assets            3,967,853      4,290,884
 Long term investment securities                     74,668         101,864
 Property and equipment, net                         1,433,592      1,160,994
 Other assets                                        910,723        301,374
                                                  $  6,386,836   $  5,855,116
 Liabilities and Shareholders' Equity
 Current liabilities:
             Accounts payable                     $  1,088,651   $  954,281
             Accrued expenses and other current      423,202        346,871
             liabilities
             Merchandise credit and gift card        235,789        197,932
             liabilities
             Current income taxes payable            89,271         2,444
              Total current liabilities        1,836,913      1,501,528
 Deferred rent and other liabilities                 479,164        318,814
 Income taxes payable                                93,637         124,262
              Total liabilities                2,409,714      1,944,604
 Total shareholders' equity                          3,977,122      3,910,512
                                                  $  6,386,836   $  5,855,116



BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
                                                  Nine Months Ended
                                                  November 24,  November 26,
                                                  2012           2011
 Cash Flows from Operating Activities:
  Net earnings                                    $  663,916     $ 638,494
  Adjustments to reconcile net earnings to net
  cash
         provided by operating activities:
         Depreciation                                139,411       131,989
         Stock-based compensation                    34,591        34,682
         Tax benefit from stock-based                13,056        (430)
         compensation
         Deferred income taxes                       (13,897)      13,596
         Other                                       826           (1,262)
         (Increase) decrease in assets, net of
         effect of acquisitions:
          Merchandise inventories                (496,100)     (388,347)
          Trading investment securities          (3,508)       (882)
          Other current assets                   (86,975)      (55,697)
          Other assets                           (10,655)      903
         Increase (decrease) in liabilities, net
         of effect of acquisitions:
          Accounts payable                       292,305       238,495
          Accrued expenses and other current     8,398         33,663
         liabilities
          Merchandise credit and gift card       21,196        4,871
         liabilities
          Income taxes payable                   32,110        (97,435)
          Deferred rent and other                12,742        15,850
         liabilities
  Net cash provided by operating activities          607,416       568,490
 Cash Flows from Investing Activities:
  Purchase of held-to-maturity investment            (393,578)     (1,277,815)
  securities
  Redemption of held-to-maturity investment          1,031,249     1,128,125
  securities
  Redemption of available-for-sale investment        31,715        15,550
  securities
  Capital expenditures                              (238,405)     (159,244)
  Payment for acquisitions, net of cash acquired     (668,609)     -
  Payment for acquisition of trademarks              (40,000)      -
  Net cash used in investing activities              (277,628)     (293,384)
 Cash Flows from Financing Activities:
  Proceeds from exercise of stock options            31,660        161,705
  Excess tax benefit from stock-based                3,885         4,638
  compensation
  Repurchase of common stock, including fees         (696,237)     (859,286)
  Net cash used in financing activities              (660,692)     (692,943)
  Net decrease in cash and cash equivalents          (330,904)     (417,837)
 Cash and cash equivalents:
  Beginning of period                               1,003,166     1,183,587
  End of period                                   $  672,262     $ 765,750



SOURCE Bed Bath & Beyond Inc.

Website: http://www.bedbathandbeyond.com
Contact: Kenneth C. Frankel, +1-908-855-4554; or Eugene A. Castagna,
+1-908-855-4110