This summary is based on the first quarter fiscal 2007 earnings call conducted by Bed Bath & Beyond, Inc. (BBBY: chart) on June 27, 2007.

Management:
Co-Chairman: Warren Eisenberg

Key Investor Issues:

- Quarterly earnings rose to 38 cents per share, compared with 35 cents a year earlier.
- Net sales increased to $1.6 billion, or 11.3% higher than last-year same period.
- Same-store sales gained 1.6%, vs. an increase of 4.9% last year.
- Gross profit for the fiscal first quarter was about $646 million or 41.6% of net sales, compared with $590 million or 42.3% a year ago.
-The company completed the acquisition of buybuy BABY.

Fiscal Year 2007 Highlights

- The company repurchased approximately 7 million shares of its common stock for an aggregate price of roughly $287 million.
- At the end of the quarter, the Company had repurchased approximately 14.5 million shares for an aggregate price of approximately $587 million under the $1 billion share repurchase program authorized in December 2006.

The company opened 6 Bed Bath & Beyond stores during the fiscal first quarter.

- Christmas Tree Shops operated 35 stores, one of which was opened in the first quarter.
- Since the beginning of the fiscal second quarter on June 3, 2007, 2 additional Bed Bath & Beyond stores have opened.

The company plans to open four Christmas Tree Shops stores by the end of the year.

- Additional buybuy BABY and Harmon stores, as well as the E-Service fulfillment center will also open before the fiscal-year end.
- In fiscal second quarter approximately 10 Bed Bath & Beyond stores are expected to make their debut.

The company plans to open approximately 70 new Bed Bath & Beyond stores during the third and fourth fiscal quarters.

The company signed a lease for its first store outside the United States, which will be located in Richmond Hill, Ontario.

Although the company reported record first quarter net sales and earnings per share, the financial results fell just short of expectations.

However, the company has reached an all-time high market share and is confident in the ever-growing success if its home-related business, continuing to target in an excess of 1,300 domestic Bed Bath & Beyond stores.

Despite fears that the slowdown in housing and higher energy cost may affect the company’s business, Bed Bath & Beyond continues to be focused on building a business that stands the test of time and outweighs competitors, with the help of resources and reinvestment. Since becoming a public company through reinvesting in our business, we have grown from 34 stores in nine states o expecting to end this year with over 970 stores in 49 states, the District of Columbia, Puerto Rico and Canada.

Selling, general and administrative expenses in the quarter were about $492 million or 31.7% of net sales, compared with $441 million or 31.6% of net sales a year ago.

- SG&A as a percentage of net sales deleveraged approximately 10 basis points for the quarter, due primarily to a relative increase in advertising expense.
- The operating profit margin was lower by approximately 80 basis points.

The all cash acquisition of buybuy BABY and share repurchase program, cash, cash equivalent and investment securities totaled about $770 million at June 2nd, 2007.

- Capital spending for all of fiscal 2007 will be approximately $375 million.
- Shareholders equity, after taking into consideration the share repurchases, was approximately $2.5 billion.
- The company expects full year effective tax rate to be in a range of from 37.2% to 37.5% as compared to the prior estimate for the full year and the actual experience for the first quarter of 36.3%.
- The implementation of FIN 48, Accounting for Uncertainty in Income Taxes has significantly increased the variability in the company’s quarterly tax rates.

Second-Quarter Earnings Guidance

- Flat or low single-digit percentage increase is expected.
- Positive comp sales in the second half of the year are expected.