- Net Earnings for Quarter of $.34 per Diluted Share

- Quarterly Net Sales Decrease by 0.7%

- Quarterly Comparable Store Sales Decrease by 5.6%

- Estimates Earnings Per Diluted Share of $.40 to $.46 for Fourth Quarter Ending February 28, 2009

UNION, N.J., Jan. 7 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $.34 per diluted share ($87.7 million) in the fiscal third quarter ended November 29, 2008, compared with net earnings of $.52 per diluted share ($138.2 million) in the same quarter a year ago. On December 2, 2008, the Company announced revised net earnings estimates of $.31 to $.35 per diluted share for the fiscal third quarter of 2008. Net sales for the fiscal third quarter of 2008 were approximately $1.783 billion, a decrease of approximately 0.7% from net sales of approximately $1.795 billion reported in the fiscal third quarter of 2007. Comparable store sales in the fiscal third quarter of 2008 decreased by approximately 5.6%, compared with an increase of approximately 0.8% in last year's fiscal third quarter.

For the fiscal nine months ended November 29, 2008, the Company reported net earnings of $1.10 per diluted share ($283.7 million) compared with net earnings of $1.44 per diluted share ($389.9 million) in the corresponding period a year ago. Net sales for the fiscal nine months of 2008 were approximately $5.285 billion, an increase of approximately 3.3% from net sales of approximately $5.116 billion in the corresponding period a year ago. Comparable store sales for the fiscal nine months of 2008 decreased by approximately 1.7%, compared with an increase of approximately 1.5% in last year's fiscal nine months.

Based on the current and prospective macroeconomic and retail environments, the Company now estimates it will earn approximately $.40 to $.46 per diluted share for the fiscal fourth quarter of 2008, ending February 28, 2009. This is based, in part, upon a modeled mid-single digit percentage decrease in its comparable store sales percentage. This brings the Company's full year net earnings estimate to be approximately $1.50 to $1.56 per diluted share.

As of November 29, 2008, the Company had a total of 1,021 stores, including 921 Bed Bath & Beyond stores (18 of which were opened during the fiscal third quarter, including a third store in Canada) in 49 states, the District of Columbia, Puerto Rico and Canada, 48 Christmas Tree Shops stores (7 of which were opened during the fiscal third quarter), 11 buybuy BABY stores, and 41 stores under the names of Harmon or Harmon Face Values. Consolidated store space as of November 29, 2008 was approximately 31.6 million square feet. Since the beginning of the fiscal fourth quarter on November 30, 2008, one additional Bed Bath & Beyond store in Canada, one additional Christmas Tree Shops store and one additional buybuy BABY store have been opened. In addition, the Company is in a joint venture which operates 2 stores in Mexico under the name 'Home & More.'

Bed Bath & Beyond Inc. and subsidiaries (the 'Company') is a chain of retail stores, operating under the names of Bed Bath & Beyond, Christmas Tree Shops, Harmon, Harmon Face Values and buybuy BABY. Through a joint venture, the Company also operates retail stores in Mexico under the name 'Home & More.' The Company sells a wide assortment of merchandise principally including domestics merchandise and home furnishings as well as food, giftware, health and beauty care items and infant and toddler merchandise.