Bed, Bath and Beyond 2001 Annual Report Download - page 4

BED BATH & BEYOND ANNUAL REPORT 2001
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WARREN EISENBERG LEONARD FEINSTEIN STEVEN H. TEMARES
Co-Chairman and Co-Chairman and President & Chief Operating Officer
Co-Chief Executive Officer Co-Chief Executive Officer and Member of the Board of Directors
This is a new look for us, but we’re sure it comes as no
surprise. We try to keep things simple that ought to be
kept simple. To present you with the portrait of fiscal
2001, our 30th Anniversary and best year ever, we have combined
the Bed Bath & Beyond Inc. Notice of Annual Meeting and Proxy
Statement with our Annual Report. The Annual Report and
Proxy materials are about conveying information, and we are
doing that as simply and directly as we can. The color and the
excitement are where they have always been: in the stores.
For 30 years, this Company’s primary focus has been on our
merchandise and the operation of our stores, because these are
the things our customers see. For the 10 years since our initial
public offering, the ability of our people to execute on this focus
has resulted in our meeting or exceeding expectations in each of
our 39 quarters as a public company. Our formula constantly
evolves, it works, and we are enormously grateful for the efforts of
all our associates who make it work.
In a way, what you see in these materials serves that same
focus. We have simplified these documents because we believe
your money is better spent elsewhere. This is another effort to
return more value to our shareholders. By pulling back a little on
the glitz, we have a little more to spend where it matters most – in
the stores, online, and in support of all we do as merchants.
In keeping with the spirit of simplification, we do want to
share some of the highlights from fiscal 2001 that you will see in
the following pages. Net earnings for the year (fifty-two weeks)
ended March 2, 2002 totaled $219.6 million ($.74 per share),
exceeding fiscal 2000 (fifty-three weeks) net earnings of $171.9
million ($.59 per share) by approximately 27.7%.
Net sales for fiscal 2001 were $2.9 billion, an increase of
approximately 22.2% from the prior year. Comparable store sales
for fiscal 2001 increased by approximately 7.1%. During fiscal
2001, we opened 85 new Bed Bath & Beyond stores. We ended
the year with 395 stores in 44 states and one store in Puerto Rico.
Our balance sheet continues to strengthen. At the close of
fiscal 2001, cash and cash equivalents were $429.5 million, and
the Company had an additional $51.9 million in investment
securities, compared to $239.3 million in cash and cash
May 3, 2002
equivalents a year earlier. Shareholders’ equity at year end was
$1.1 billion, up from $817.0 million the prior year.
This doesn’t just happen. Over 19,000 talented people work
very hard, creatively and constructively finding ways to please our
customers. Ultimately, the credit is theirs. For the 30 years we
have been in business and the 10 years we’ve been sending out
these annual reports, we’ve been talking about our culture.
It isn’t just a word. Our people are trained to know what is
important to the customer and empowered in our decentralized
environment to act on that knowledge. Our customer has other
choices; we must exceed expectations. Everything else flows from
this, particularly the financial results that follow in this booklet.
While we celebrate our 30th Anniversary and our finest year
ever, we are of course mindful of the criminal acts committed
against our nation this past year. The events of September 11th
and the ongoing war on terrorism temper our celebration and
place our accomplishments in proper perspective. Still, we are
again pleased with the results we have to report to you. In
keeping with our culture, however, pleased does not mean
satisfied. We plan to open approximately 88 new Bed Bath &
Beyond stores in fiscal 2002, in new and existing markets. We
continue to evaluate new merchandise items, new departments,
system and process enhancements, new looks in fixturing and
store design, and every point of contact we have to improve the
results of our operations. On March 5, 2002, we consummated
the acquisition of Harmon Stores, Inc., a health and beauty care
retailer currently operating 28 stores in New Jersey (22), New
York (5) and Connecticut (1). This represents something new for
us as well, and while we do not believe the benefits to be derived
this year will have any material effect on our overall results or
financial condition for 2002, we are excited by the opportunities.
We know it all begins and ends with our customers. As we
begin the next 30 years of our existence, we rededicate ourselves
to the culture of exceeding their expectations. By remaining
committed to the principles upon which we were founded,
we intend to make 2002 another record year.
Again, thank you to each of our associates, customers and
business partners who continue to lead us toward the ever more
successful company we are striving to become.
To Our Fellow Shareholders: