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%)

*Three months ended November 25, 2006 and November 26, 2005.

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)

*Expressed in percentage points.

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

*Nine months ended November 25, 2006 and November 26, 2005.

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Related Foolishness:

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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.