Bed Bath & Beyond (BBBY)

UNION, New Jersey, April 9, 2008 --- Bed Bath & Beyond Inc. today reported net earnings of $.66 per diluted share ($172.9 million) in the fiscal fourth quarter (thirteen weeks) ended March 1, 2008.  Net earnings for the fiscal fourth quarter of 2006 (fourteen weeks) were $.72 per diluted share ($205.8 million), which included an additional week and reflected a non-recurring charge of approximately $.07 per diluted share.

Net sales for the fiscal fourth quarter (thirteen weeks) were approximately $1.933 billion, a decrease of approximately 3.1% from the fiscal fourth quarter (fourteen weeks) of 2006.  Sales for the fiscal fourth quarter of 2007 were impacted by there being one less week in the period and by the fact that the week after Thanksgiving fell in the fiscal third quarter compared to falling in the fiscal fourth quarter of 2006.  Comparable store sales for the fiscal fourth quarter of 2007 decreased by approximately 0.4% compared with an increase of approximately 5.2% in last year’s fiscal fourth quarter.  Comparable store sales percentages are calculated based on an equivalent number of weeks for each quarter.

Net earnings for the fiscal year (fifty-two weeks) ended March 1, 2008 were $2.10 per diluted share ($562.8 million), compared with net earnings per diluted share of $2.09 ($594.2 million) a year ago, which was a fifty-three week year and included the aforementioned non-recurring charge of approximately $.07 per diluted share.

Net sales for fiscal 2007 (fifty-two weeks), were approximately $7.049 billion, an increase of approximately 6.5% from the prior fiscal year (fifty-three weeks).  Comparable store sales for fiscal 2007 increased by approximately 1.0% compared with an increase of approximately 4.9% in fiscal 2006.  Comparable store sales percentages are calculated based on an equivalent number of weeks for each annual period.

During the fiscal fourth quarter of 2007, the Company repurchased approximately 3.6 million shares of its common stock for an aggregate cost of approximately $102 million. This included the completion of the $1 billion share repurchase program authorized in 2006.  As of March 1, 2008, the balance remaining of the share repurchase program authorized in September 2007 was approximately $967 million dollars.

Assuming no significant change in the macroeconomic environment, the Company estimates that its fiscal 2008 earnings per diluted share will decline from a low double digit percentage to a mid teens percentage from the $2.10 per diluted share reported for fiscal 2007. This estimate is based, in part, upon the assumption that the comparable store sales for all of fiscal 2008 will be relatively flat to slightly negative.  For the fiscal first quarter, the Company estimates earnings to be approximately $.26 to $.30 per diluted share.