Bed, Bath and Beyond 2014 Annual Report Download - page 7

OVERVIEW
Bed Bath & Beyond Inc. and subsidiaries (the ‘‘Company’’) is a retailer which operates under the names Bed Bath & Beyond
(‘‘BBB’’), Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! (collectively, ‘‘CTS’’), Harmon or Harmon Face
Values (collectively, ‘‘Harmon’’), buybuy BABY (‘‘Baby’’) and World Market, Cost Plus World Market and Cost Plus (collectively,
‘‘Cost Plus World Market’’). Customers can purchase products from the Company either in-store, online or through a mobile
device. The Company has the developing ability to have customer purchases picked up in-store or shipped direct to the
customer from the Company’s distribution facilities, stores or vendors. The Company also operates Linen Holdings, a provider
of a variety of textile products, amenities and other goods to institutional customers in the hospitality, cruise line, healthcare
and other industries. (See ‘‘Acquisitions,’’ Note 2 in the consolidated financial statements for information regarding the
acquisitions of Cost Plus World Market and Linen Holdings). Additionally, the Company is a partner in a joint venture which
operates five retail stores in Mexico under the name Bed Bath & Beyond.
The Company accounts for its operations as two operating segments: North American Retail and Institutional Sales. The
Institutional Sales operating segment, which is comprised of Linen Holdings, does not meet the quantitative thresholds under
U.S. generally accepted accounting principles and therefore is not a reportable segment.
The Company sells a wide assortment of domestics merchandise and home furnishings. Domestics merchandise includes categories
such as bed linens and related items, bath items and kitchen textiles. Home furnishings include categories such as kitchen and
tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and certain juvenile products.
The Company’s strategy begins and ends with an intense focus on its customers:
• To do more for and with its customers;
• To continue to broaden its customer base; and
• To engage with its customers wherever, whenever and however they prefer whether it be in-store, online, through a
mobile device, or in any combination of these methods.
The Company’s objective is to be its customers’ first choice for products and services in the categories offered, in the markets,
channels and countries in which the Company operates, as those customers express their life interests and travel through their
various life stages. The Company strives to accomplish this objective through excellent customer service, including new service
ideas and solutions, and by offering an extensive breadth, depth and differentiated assortment of merchandise at the right
value. The Company is also enhancing its ability to achieve this objective through its ongoing commitment to world class
information and interactive technology, comprehensive analytics and targeted marketing and communications.
Operating in the highly competitive retail industry, the Company, along with other retail companies, is influenced by a number
of factors including, but not limited to, general economic conditions including the housing market, unemployment levels and
commodity prices; the overall macroeconomic environment and related changes in the retailing environment; consumer
preferences and spending habits; unusual weather patterns and natural disasters; competition from existing and potential
competitors; evolving technology; and the ability to find suitable locations at acceptable occupancy costs and other terms to
support the Company’s growth. The Company cannot predict whether, when or the manner in which these factors could affect
the Company’s operating results.
For fiscal 2014 and 2013, the results of operations include Linen Holdings and Cost Plus World Market from the beginning of
the fiscal year. For fiscal 2012, the results of operations include Linen Holdings since the date of acquisition on June 1, 2012
and Cost Plus World Market since the date of acquisition on June 29, 2012.
The following represents an overview of the Company’s financial performance for the periods indicated:
• Net sales in fiscal 2014 (fifty-two weeks) increased approximately 3.3% to $11.881 billion; net sales in fiscal 2013
(fifty-two weeks) increased approximately 5.4% to $11.504 billion over net sales of $10.915 billion in fiscal 2012
(fifty-three weeks).
• Comparable sales for both fiscal 2014 and fiscal 2013 increased by approximately 2.4% as compared with an increase of
approximately 2.7% in fiscal 2012. For fiscal 2014, comparable sales consummated through customer facing online
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
BED BATH & BEYOND 2014 ANNUAL REPORT
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