After the market close on December 20, national retail chain Bed Bath & Beyond (NASDAQ:BBBY) released fiscal 2006 third-quarter earnings for the period ended November 25, 2006. Here are the quick and dirty details for the quarter.
- Sales grew 11.8% to $1.6 billion as same-store sales advanced 4.6%.
- Total diluted earnings grew 11.1% but came in below analyst projections.
- Inventory growth outpaced sales expansion, growing 15.1% and accounting for the bulk of decreased free cash flow as compared to last year's third quarter.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Sales |
$1,619,240 |
$1,448,680 |
11.8% |
|
Net Profit |
$142,436 |
$134,620 |
5.8% |
|
EPS |
$0.50 |
$0.45 |
11.1% |
|
Diluted Shares |
285,664 |
301,075 |
(5.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
43.5% |
42.5% |
1.00 |
|
Operating Margin |
13% |
14.2% |
(1.2) |
|
Net Margin |
8.8% |
9.3% |
(0.5) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$817,554 |
$941,032 |
(13.1%) |
|
Inventory |
$1,639,355 |
$1,424,730 |
15.1% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$668,727 |
$602,421 |
11% |
|
Long-Term Debt |
$0 |
$0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$217,715 |
$312,408 |
(30.3%) |
|
Capital Expenditures |
$235,187 |
$167,224 |
40.7 |
|
Free Cash Flow |
($17,472) |
$145,184 |
N/A |
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Bed Bath & Beyond is both a Stock Advisor and an Inside Value recommendation.
Fool contributor Ryan Fuhrmann is long shares of Bed Bath but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
