Bed Bath's Decorative Quarter: Fool by Numbers

On June 27, Bed Bath & Beyond   (Nasdaq: BBBY  ) released first-quarter earnings for the period ended June 2.

  • Despite operating in a battered retail market, the company managed to increase sales by 11.3%, and boosted same-store sales by 1.6%.
  • The company repurchased approximately 7 million shares of its common stock during the quarter.
  • Bed Bath & Beyond entered international markets by executing a lease for its first store in Ontario.
  • Though the slumped housing market is slowing sales, management is positioning itself to remain competitive in the long run.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$1,553.3

$1,396.0

11.3%

Net Profit

$104.6

$100.4

4.2%

EPS

$0.38

$0.35

8.6%

Diluted Shares

278.2

285.2

(2.4%)

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

41.6%

42.3%

(0.7)

Operating Margin

9.9%

10.7%

(0.7)

Net Margin

6.7%

7.2%

(0.5)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$695.2

$642.3

8.2%

Inventory

$1,558.5

$1,391.0

12.0%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$609.0

$551.2

10.5%

Long-Term Debt

$0.0

$0.0

N/A

The balance sheet reflects the company's health.

Cash Flow Highlights

 Q1 2007

 Q1 2006

Change

Cash From Ops.

$117.6

$82.0

43.4%

Capital Expenditures

$76.5

$78.7

(2.8%)

Free Cash Flow

$41.1

$3.3

1137.1%

Free cash flow is a Fool's best friend.

Related Foolishness:

Bed Bath & Beyond is a Motley Fool Stock Advisor pick. Discover more stellar stocks from founding Fools David and Tom Gardner with a free 30-day trial subscription.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.


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