Bed Bath & Beyond (BBBY) has reported 11.47 percent fall in profit for the quarter ended Feb. 25, 2017. The company has earned $268.73 million, or $1.84 a share in the quarter, compared with $303.54 million, or $1.91 a share for the same period last year.
Revenue during the quarter grew 3.40 percent to $3,533.95 million from $3,417.89 million in the previous year period. Gross margin for the quarter contracted 61 basis points over the previous year period to 38.01 percent. Total expenses were 87.83 percent of quarterly revenues, up from 85.41 percent for the same period last year. That has resulted in a contraction of 242 basis points in operating margin to 12.17 percent.
Operating income for the quarter was $429.93 million, compared with $498.58 million in the previous year period.
Steven H. Temares, chief executive officer and Member of the Board of Directors of Bed Bath & Beyond Inc. stated, "During fiscal 2016, we made significant investments to evolve our Company and advance our mission to be trusted by our customers as the expert for the home and 'heart-related' life events by continuing to build and deliver a strong foundation of differentiated products, and services and solutions for customers, while driving operational excellence."
Operating cash flow improves marginallyBed Bath & Beyond has generated cash of $1,041.79 million from operating activities during the year, up 2.92 percent or $29.60 million, when compared with the last year. The company has spent $491.93 million cash to meet investing activities during the year as against cash outgo of $275.63 million in the last year.
The company has spent $580.73 million cash to carry out financing activities during the year as against cash outgo of $1,088.75 million in the last year period.
Cash and cash equivalents stood at $488.33 million as on Feb. 25, 2017, down 5.28 percent or $27.24 million from $515.57 million on Feb. 27, 2016.
Working capital declines
Bed Bath & Beyond has witnessed a decline in the working capital over the last year. It stood at $1,778.24 million as at Feb. 25, 2017, down 9.21 percent or $180.49 million from $1,958.74 million on Feb. 27, 2016. Current ratio was at 1.87 as on Feb. 25, 2017, down from 2.05 on Feb. 27, 2016.
Debt remains almost stableTotal debt of Bed Bath & Beyond remained almost stable for the quarter at $1,491.60 million, when compared with the last year period. Total debt was 21.79 percent of total assets as on Feb. 25, 2017, compared with 22.94 percent on Feb. 27, 2016. Debt to equity ratio was at 0.55 as on Feb. 25, 2017, down from 0.58 as on Feb. 27, 2016. Interest coverage ratio improved to 25.61 for the quarter from 20.39 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
