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

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

-- Net Earnings per Diluted Share of $.93

-- Quarterly Net Sales Increase by Approximately 1.7%

-- Quarterly Comparable Sales Increase by Approximately 0.4%

-- Modeling Fiscal Second Quarter 2014 Net Earnings per Diluted Share of
Approximately $1.08 to $1.16

-- Continues to Model Fiscal 2014 Net Earnings per Diluted Share to Increase
by a Mid-Single Digit Percentage

PR Newswire

UNION, N.J., June 25, 2014

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         369,039      367,116
             liabilities
             Merchandise credit and gift card           290,055      262,945
             liabilities
             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        (13,444)     (22,018)
         liabilities
          Merchandise credit and gift card          5,839        11,464
         liabilities
          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             352,500      337,500
  securities
  Capital expenditures                                 (67,918)     (64,966)
  Net cash provided by (used in) investing              245,213      (96,734)
  activities
 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              170,052      (125,121)
  equivalents
 Cash and cash equivalents:
  Beginning of period                                  366,516      564,971
  End of period                                       $ 536,568    $ 439,850



SOURCE Bed Bath & Beyond Inc.

Website: http://www.bedbathandbeyond.com
Contact: INVESTOR CONTACTS: Kenneth C. Frankel, (908) 855-4554; Susan E.
Lattmann, (908) 855-4120
 
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