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Bed Bath & Beyond Inc. (NASDAQ:BBBY)

This company has been moved to the archive! The financial data has not been updated since September 30, 2022.

Common-Size Income Statement
Quarterly Data

Bed Bath & Beyond Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Aug 27, 2022 May 28, 2022 Feb 26, 2022 Nov 27, 2021 Aug 28, 2021 May 29, 2021 Feb 27, 2021 Nov 28, 2020 Aug 29, 2020 May 30, 2020 Feb 29, 2020 Nov 30, 2019 Aug 31, 2019 Jun 1, 2019 Mar 2, 2019 Dec 1, 2018 Sep 1, 2018 Jun 2, 2018 Mar 3, 2018 Nov 25, 2017 Aug 26, 2017 May 27, 2017 Feb 25, 2017 Nov 26, 2016 Aug 27, 2016 May 28, 2016
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -72.29 -76.13 -71.74 -64.38 -69.71 -67.57 -68.48 -63.47 -63.26 -73.35 -67.37 -66.88 -73.27 -65.52 -65.33 -66.90 -66.32 -64.96 -64.12 -64.76 -63.61 -63.53 -61.99 -63.03 -62.62 -62.62
Gross profit 27.71% 23.87% 28.26% 35.62% 30.29% 32.43% 31.52% 36.53% 36.74% 26.65% 32.63% 33.12% 26.73% 34.48% 34.67% 33.10% 33.68% 35.04% 35.88% 35.24% 36.39% 36.47% 38.01% 36.97% 37.38% 37.38%
Selling, general and administrative expenses -44.18 -43.56 -33.28 -37.17 -32.90 -33.72 -28.99 -34.02 -31.63 -55.39 -33.06 -33.77 -32.39 -34.70 -28.23 -31.47 -30.99 -32.09 -26.81 -31.57 -30.64 -31.11 -25.84 -29.83 -27.97 -29.60
Impairments -3.86 -1.82 -0.88 -0.09 -0.38 -0.47 1.72 -2.21 -1.09 -6.52 -2.18 -0.43 -1.04 -15.60 -15.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Restructuring and transformation initiative expenses -3.76 -1.66 -2.18 -2.19 -1.23 -1.72 -2.23 -0.64 -1.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Gain (loss) on sale of businesses 0.00 0.00 0.00 -0.75 -0.01 -0.20 -2.93 -4.35 7.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating profit (loss) -24.09% -23.18% -8.07% -4.59% -4.24% -3.68% -0.90% -4.69% 10.06% -35.25% -2.61% -1.08% -6.70% -15.81% -8.97% 1.63% 2.69% 2.95% 9.07% 3.67% 5.75% 5.36% 12.17% 7.15% 9.40% 7.78%
Interest expense, net -1.29 -1.12 -0.82 -0.84 -0.81 -0.82 -0.71 -0.68 -0.87 -1.31 -0.49 -0.62 -0.60 -0.62 -0.47 -0.75 -0.50 -0.61 -0.44 -0.46 -0.65 -0.60 -0.48 -0.62 -0.61 -0.60
Gain (loss) on extinguishment of debt 0.00 0.00 0.00 0.00 -0.01 -0.01 0.00 0.00 2.87 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Earnings (loss) before (provision) benefit from income taxes -25.39% -24.30% -8.89% -5.43% -5.06% -4.51% -1.61% -5.37% 12.06% -36.57% -3.11% -1.70% -7.30% -16.43% -9.44% 0.88% 2.19% 2.34% 8.63% 3.21% 5.10% 4.76% 11.69% 6.53% 8.79% 7.18%
(Provision) benefit for income taxes -0.09 -0.14 1.13 -9.29 1.37 1.91 1.96 2.49 -3.96 13.45 1.00 0.30 2.20 2.01 1.76 -0.08 -0.53 -0.76 -3.41 -1.13 -1.89 -2.01 -4.09 -2.25 -3.19 -2.71
Net earnings (loss) -25.48% -24.44% -7.76% -14.72% -3.69% -2.60% 0.35% -2.88% 8.11% -23.12% -2.11% -1.40% -5.10% -14.42% -7.67% 0.80% 1.66% 1.58% 5.22% 2.07% 3.21% 2.75% 7.60% 4.28% 5.60% 4.48%

Based on: 10-Q (reporting date: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27), 10-K (reporting date: 2017-02-25), 10-Q (reporting date: 2016-11-26), 10-Q (reporting date: 2016-08-27), 10-Q (reporting date: 2016-05-28).

The financial trajectory indicates a systemic deterioration in profitability, transitioning from consistent operational gains in 2016 and 2017 to profound losses by 2022. This decline is characterized by narrowing gross margins, escalating operational expenses, and the emergence of significant non-recurring charges.

Gross Margin Analysis
Gross profit margins were relatively stable between 33% and 38% from May 2016 through December 2018. A downward trend became evident starting in 2019, with margins experiencing heightened volatility and reaching a low of 23.87% in May 2022. This compression is directly attributable to the rise in the cost of sales, which increased from an average of approximately 63% in the early period to peak at 76.13% in May 2022.
Operating Expense Trends
Selling, general and administrative (SG&A) expenses remained largely consistent, fluctuating between 25% and 34% of net sales until early 2020. A severe spike occurred in May 2020, where SG&A reached 55.39% of net sales. While this figure partially corrected, a secondary upward trend emerged in 2022, with expenses climbing to 44.18% by August 2022, further eroding the operating base.
Impact of Non-Recurring Charges
Beginning in March 2019, significant impairment charges began to negatively impact the bottom line, with peaks of 15.41% and 15.60% in the first half of that year. Additionally, restructuring and transformation initiative expenses became a recurring burden from August 2020 onward, consistently reducing net sales by between 0.64% and 3.76% per quarter.
Operating and Net Profitability
The operating profit margin remained positive and peaked at 12.17% in February 2017. This trend reversed sharply in March 2019, entering a period of persistent negativity. Despite a brief recovery to 10.06% in August 2020, the operating margin plummeted to -24.09% by August 2022. Net earnings followed a similar trajectory, shifting from a peak of 7.60% in February 2017 to losses exceeding 25% of net sales in the final quarters of the analyzed period.
Financial Obligations and Tax Effects
Net interest expenses remained relatively low but showed a gradual increase, rising from approximately 0.60% of net sales in 2016 to 1.29% by August 2022. Tax provisions shifted from consistent payments to tax benefits during the periods of heaviest operational losses, particularly in May 2020, though these benefits were insufficient to offset the widening operating deficits.

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