Bed Bath & Beyond (BBBY)
Q1 2010 Earnings Call
June 23, 2010 5:00 p.m. ET
Eugene Castagna - CFO and Treasurer
Leonard Feinstein - Co-Chairman
Steven Temares - CEO
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Welcome to Bed Bath & Beyond's first quarter of fiscal 2010 results conference call. (Operator Instructions) A rebroadcast of the conference call will be available beginning on Wednesday June 23, 2010 at 6:30 p.m. Eastern Time through 6:30 p.m. Eastern Time on Friday, June 25, 2010. To access the rebroadcast, you may dial 1-888-203-1112 with the passcode ID of 5237546.
Now at this time, it's my pleasure to turn the conference call over to Eugene Castagna, Chief Financial Officer and Treasurer of Bed Bath & Beyond.
Welcome to Bed Bath & Beyond's first quarter of fiscal 2010 conference call. Within the past hour, we issued a press release announcing Bed Bath & Beyond's results for the three month period ended May 29, 2010.
During this call, we will comment on some of the first quarter highlights and update on fiscal second quarter and 2010 planning assumptions. Before proceeding I will read the following statement, and I quote: Bed Bath & Beyond's fiscal press release and comments made during this call may contain forward-looking statements within the meaning of Section 21E of the Securities & Exchange Act of 1934 as amended.
Many of these forward-looking statements can be identified by the use of words such as may, will, expect, anticipate, estimate, assume, project, plan and similar words and phrases.
The company's actual results and future financial condition may differ materially from those expressed in any such forward-looking statements as a result of many factors that may be outside the company's control. Please refer to Bed, Bath & Beyond's SEC filings including its Form 10K for the year ended February 27, 2010. The company does not undertake any obligation to update its forward-looking statements.”
Joining me on today's call are Leonard Feinstein, Co-Chairman of Bed Bath & Beyond; and Steven Temares, Chief Executive Officer and Member of the Board of Directors. I'm now very pleased to introduce Leonard Feinstein.
I am pleased to report that our company's net earnings per diluted share increased approximately 53% in the fiscal first quarter to $0.52. While the economic environment appears to be showing some signs of stabilizing, it appears the consumer continues to face economic challenges, and the pressures of the macroeconomic environment still persist.
As such, we remain cautiously optimistic as we continue fiscal 2010. During the fiscal first quarter, we opened two Bed Bath & Beyond and two buybuy BABY stores, as well as relocated and renovated a number of Bed Bath & Beyond stores.
Consolidated store space at May 29, 2010 was approximately 33.9 million sq. feet, an increase of approximately 5% over last year's first quarter. Since the beginning of the fiscal second quarter of 2010, we have opened one additional Bed Bath & Beyond store.
We currently operate 1,105 stores, including 968 Bed Bath & Beyond stores in 49 states, The District of Columbia, Puerto Rico, and Canada, as well as 61 Christmas Tree Shops, 31 buybuy BABY stores, and 45 stores under the names Harmon or Harmon Face Values.
In addition, we are a partner in a joint venture which operates two stores in the Mexico City market under the name "Home & More.
During fiscal 2010, including the five stores we have opened to-date we anticipate opening a total of approximately 55 to 60 stores across all of our concepts. We look forward to expanding into our 50th state, Hawaii, with a Bed Bath & Beyond store expected to open during the fiscal second quarter.
We remain committed to, and are excited about the continued growth of all of our merchandize offerings. We continue to apply our stringent standards to growth as we evaluate new store sites as well as continue to review our existing locations and lease terms for opportunities to relocate and/or rightsize our stores in response to changing market conditions.
As we have previously said, we believe throughout the United States and Canada there is an opportunity to operate in excess of 1300 Bed Bath & Beyond stores, as well as grow our Christmas Tree shops and buybuy BABY concepts from coast to coast. Additionally, we will continue to open Harmon Face Values stores and selectively place health and beauty care offerings in all our concepts.
We continue to work to increase the productivity of our existing stores by evolving the merchandize offerings, as well as by expanding, renovating, remodeling and/or relocating stores to enhance our customers' shopping experience.
Our ability to leverage the breadth and depth of our merchandize offering through our Bridal, Baby, and Gift registries and continued development of our online sales capabilities has afforded us additional opportunities to attract new customers to Bed Bath & Beyond.
The success of our company is due in large part to the tremendous efforts of our associates and to our unique decentralized culture. This culture, which takes advantage of the knowledge, independence and the customer focus of our associates has always been the foundation of our long term performance, and allows us to respond more quickly to local market demand and the changing economic conditions on a market-by-market basis.
We are confident that we have the people, the resources and the capability to achieve our near and long term goals.