This is a summary of the third quarter fiscal 2007 earnings call conducted by Bed Bath & Beyond, Inc. (BBBY: chart) on January 3, 2008.

Management:

Senior Vice President Investor Relations: Ronald Curwin
Co-Chairman of the Board: Warren Eisenberg
Chief Executive Officer & Director: Steven H. Temares

Key Investor Issues

- Third quarter net income was $138.2 million, or 52 cents a share, compared with net income of $142.4 million, or 50 cents a share, a year earlier.
- Bed Bath & Beyond has bought back 24.5 million shares through December 1st, 2007.
- Total sales of the company climbed 10.8% from a year ago to $1.79 billion.
- Same-store sales inched up 0.8%, far below the 4.6% jump in last year''s period.
- The company guided earnings for the full year ending March 1st to the range of $2.08 to $2.11 a share.

Third Quarter Highlights

During the fiscal third quarter the company opened 28 new Bed Bath & Beyond stores, 3 new Christmas Tree Shops stores and one Harmon face value stores.

- As of December 1, 2007 the company operated 850 Bed Bath & Beyond stores, 39 Christmas Tree Shop stores and 40 stores under the name Harmon and Harmon Face Value and eight buybuy Baby stores.
- The company opened its first international store in Canada in December.
- So far this fourth quarter the company opened two additional Bed Bath & Beyond stores including the first store in Canada.

As of today the company is operating 861 Bed Bath & Beyond stores in 49 states, Puerto Rico, the District of Columbia and Canada.

Although the company anticipates opening as many as 24 additional Bed Bath & Beyond stores prior to the fiscal year end which would bring to 70 the total number of Bed Bath & Beyond fiscal 2007 new store openings it is possible that a few of these openings may occur subsequent to year end in March, 2008. At the current time it appears approximately three to five of the fiscal 2007 stores could potential push to the first few weeks of fiscal 2008. If this were to occur it would not materially affect the company’s financial performance for fiscal 07 or fiscal 08.

In addition, prior to fiscal year end the company plans to open one buybuy BABY store as well as a new eService fulfillment center to accommodate the growth of its online business. The company is also planning to add one or two more Christmas Tree Shop stores bringing to six or seven the total number of fiscal 2007 Christmas Tree Shop new store openings.

Consolidated store space as of Dec. 1, 2007 was 29.5 million square feet which is anticipated to grow to approximately 30 million square feet by fiscal year end.

Bed Bath & Beyond remains on target to offer in excess of 13,000 domestic Bed Bath & Beyond stores. In addition, the company has multiple opportunities to expand, renovate or remodel a significant number of existing stores thereby increasing their productivity.

The company has opened its first international store in Canada in December.

Bed Bath & Beyond is also actively engaged in and are seeking additional sites in Canada, a market that has significant growth potential. In addition, the company continues to explore other international opportunities.

The company plans to accelerate the growth of Christmas Tree Shops and buybuy BABY store concepts as well as open new stores under the names of Harmon and Harmon Face Value and roll out additional Harmon Face Value departments within Bed Bath & Beyond stores. The new Christmas Tree Shops’ 700,000 square foot distribution facility expected to become operational in early 2008 will enable the company to service the growing number of new Christmas Tree Shops expected to open over the next several years including approximately 12 in fiscal 2009.

The company repurchased approximately $929 million of its shares under the $1 billion share repurchase program approved by the board of directors in December 06.

The management anticipates completing this program by the end of fiscal 07. The company currently has the authorization to repurchase an additional $1 billion which it also plans to fund from the present and future free cash flows. The company’s board of directors continues to review the capital structure.

The company continues to be focused on building a successful business for the long term and for over 35 years the company has grown as a decentralized organization which has consistently lead to better decision making and better execution.

The company has also made continued progress in repurchasing shares under the $1 billion program authorized in December, 2006.

As of December 1, 2007 approximately $71 million remains under that authorization. In addition, in September the directors authorized an additional $1 billion share repurchase program. While retaining financial flexibility and investing in the infrastructure the company strives to maintain a capital structure that will enable it to take advantage of opportunities as they arise.