Bed Bath & Beyond (BBBY) Q2 August 2009 Earnings Notes
Previous Quarter
-1.6% comp sales
Press Release
-0.6% comp sales, revenue $1.9B +3.3% y/y ($1.9B est.), EPS 52c (48c est.)
1056 stores, 943 Bed Bath Beyond, 52 Christmas Tree Shops, 19 buybuy Baby, 41 Harmon
$1.236B cash, no debt, $4.75 net cash/share
Conference call
“outlook for overall retail environment remains challenging”
opened 9 BBBY, 3 buybuy Baby stores
32.5 million square feet at August 29th
FY2009 anticipate opening 58 new stores (27 opened already, 35 BBBY, 7 Christmas Tree, 12 buybuy Baby, 4 Harmon)
400 additional store opportunity in U.S. and Canada
Cap ex $68M 1H-FY09
Guidance
Comp sales flat to positive in Q3/Q4, slight negative-flat for FY
Net sales mid single digit Q3/Q4, low to mid single for FY
Expect some improvement operating margin, but SG&A improvement will moderate due to tougher comps
Tax rate high 30s, cap ex $250M, depreciation $180M
EPS 38c Q3, 1.79 for FY09 “now appear reasonable”
Net-net
Comps slowly improving. Quarter and guidance were fine