Name: Bed Bath & Beyond Inc. (NASDAQ:BBBY) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Bed Bath & Beyond Inc., consolidated income statement

US$ in thousands

12 months ended:	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
Net sales	7,867,778)	9,233,028)	11,158,580)	12,028,797)	12,349,301)	12,215,757)
Cost of sales	(5,384,287)	(6,114,947)	(7,616,920)	(7,924,817)	(7,906,286)	(7,639,407)
Gross profit	2,483,491)	3,118,081)	3,541,660)	4,103,980)	4,443,015)	4,576,350)
Selling, general and administrative expenses	(2,692,292)	(3,224,363)	(3,732,498)	(3,681,210)	(3,681,694)	(3,441,140)
Impairments, including on assets held for sale	(36,531)	(127,341)	(509,226)	(509,905)	—)	—)
Restructuring and transformation initiative expenses	(144,025)	(102,202)	—)	—)	—)	—)
Loss on sale of businesses	(18,221)	(1,062)	—)	—)	—)	—)
Operating profit (loss)	(407,578)	(336,887)	(700,064)	(87,135)	761,321)	1,135,210)
Interest expense, net	(64,702)	(76,913)	(64,789)	(69,474)	(65,661)	(69,555)
Gain (loss) on extinguishment of debt	(376)	77,038)	—)	—)	—)	—)
Earnings (loss) before (provision) benefit from income taxes	(472,656)	(336,762)	(764,853)	(156,609)	695,660)	1,065,655)
(Provision) benefit from income taxes	(86,967)	185,989)	151,037)	19,385)	(270,802)	(380,547)
Net earnings (loss)	(559,623)	(150,773)	(613,816)	(137,224)	424,858)	685,108)

Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).

A sustained decline in financial performance is observed over the analyzed six-year period, characterized by contracting revenues, eroding gross margins, and a transition from consistent profitability to significant operational and net losses.

Revenue and Gross Profitability: Net sales exhibited a steady downward trend, decreasing from approximately 12.2 billion US dollars in 2017 to 7.8 billion US dollars by 2022. This erosion in the top line is accompanied by a proportional decline in gross profit, which fell from 4.5 billion US dollars to 2.4 billion US dollars. The rate of decline in gross profit exceeded the rate of decline in net sales, indicating a compression of gross margins over time.
Operating Expenses and Profitability: Operating profit shifted from a positive 1.1 billion US dollars in 2017 to a recurring loss position starting in 2019. While selling, general, and administrative expenses were reduced from 3.4 billion US dollars in 2017 to 2.6 billion US dollars in 2022, these cost-cutting measures were insufficient to offset the loss in gross profit. Furthermore, significant impairment charges recorded in 2019 and 2020, totaling over 500 million US dollars in each of those years, severely impacted operating results during that interval.
Financial Costs and Net Earnings: Interest expenses remained relatively stable, fluctuating between 64 million and 77 million US dollars annually. However, the bottom line reflects a severe deterioration, with net earnings plummeting from a profit of 685 million US dollars in 2017 to a net loss of 559 million US dollars in 2022. Net losses were partially mitigated by income tax benefits between 2019 and 2021, but the return to a tax provision in 2022, coupled with operational losses, intensified the final net loss.

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