By
Anders Bylund
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More Articles
September 27, 2007
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On Sept. 26, home furnishings retailer Bed Bath & Beyond (Nasdaq: BBBY ) released second-quarter earnings for the period ending Sept. 1, 2007.
- Same-store sales improved just 2.2% over the year-ago period, but there are many ways to skin a growing cat. This company does it by building lots of new stores. Eleven stores opened in the quarter, bringing the total to 914 locations under four different names.
- The company remains debt free and plans to fund its fourth repurchase program since 2004 with present and expected future free cash flows.
- Higher inventory acquisition costs, a change in the mix of merchandise sold, and higher postage and paper costs all contributed to the falling margins.
- Bed Bath & Beyond sports a three-star rating (out of five) here at the Motley Fool CAPS community. The company's rating falls between competitor Target (NYSE: TGT ) , which garners four stars, and Williams-Sonoma (NYSE: WSM ) , which has only two stars.
(Figures in millions, except per-share data.)
Income Statement Highlights
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Q2 2008
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Q2 2007
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Change
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Sales
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$1,768
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$1,607
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10.0%
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Net Profit
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$147
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$146
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1.0%
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EPS
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$0.55
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$0.51
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7.8%
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Diluted Shares
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269.5
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284.7
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(5.3%)
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Get back to basics with the income statement.
Margin Checkup
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Q2 2008
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Q2 2007
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Change*
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41.4%
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42.2%
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(0.8)
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12.5%
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13.7%
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(1.2)
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8.3%
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9.1%
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(0.7)
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*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
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Liabilities
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Q2 2008
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Q2 2007
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Change
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Accounts Payable
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$649
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$592
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9.6%
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The balance sheet reflects the company's health.
Cash Flow Highlights
Free cash flow is a Fool's best friend.
Bed Bath & Beyond is a Motley Fool Inside Value selection and also a Motley Fool Stock Advisor pick. Try either service free for 30 days.