THE BUSINESSWEEK 50 RANKINGS + 25

15

Bed Bath & Beyond

Bed Bath & Beyond succeeds by deploying a straightforward strategy: build stores, watch expenses, generate cash, and build more stores. Despite a tough home-products market and higher building costs, Bed Bath opened 33 outlets in the quarter ended in November and now has 868—up from 34 at its 1992 IPO. Investors love its growth and cash-only approach, overseen by CEO Steven Temares, who has been ably guided by company co-founders Warren Eisenberg and Leonard Feinstein. The balance sheet boasts about $1.1 billion in cash and no long-term debt. Investors, however, are bothered by questions about Bed Bath’s accounting methods. Investigations are ongoing, but the company has stated in government filings that the equity-based charges are “not material” for its financial statements for earlier years and that it is cooperating with the SEC.

Overall Grade

A

Market Data

BBBY

Market Value
(2/28/2007)

$11.3 Billion

Profitability*

35.1%

A-

Sales Growth Rate**

14.1%

B

12-Month Sales

$6.3 Billion

12-Month Net Income

$0.6 Billion

Total Return Past 12 Months

10.7%

Past 36 Months

-2.5%

Economic SectorConsumer Discretionary
IndustryHomefurnishing Retail
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.

Steven H. Temares

Steven H. Temares, 48

CEO since 2003


The BW 50 + 25 Interactive Scoreboard

More BW Stories on Bed Bath & Beyond


More BW50 Profiles






Data as of 2/28/07 provided by Standard & Poor's Compustat