Bed Bath & Beyond, Inc. · NYSE:BBBY
Bed Bath & Beyond — Q2 2018 Earnings Presentation
14 slides from Bed Bath & Beyond's earnings presentation, Sep 26, 2018
Slide 1: Fiscal 2018 Second Quarter Earnings Call
Fiscal 2018 Second Quarter Earnings Call September 26, 2018
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements. Many of these forward-looking statements can be identified by use of words such as may, will, expect, anticipate, approximate, estimate, assume, continue, model, project, plan, goal, and similar words and phrases. T
Slide 3: Our Mission
Our Mission To be trusted by our customers as the expert for the home and heart-felt life events by continuing to build and deliver a strong foundation of differentiated products, services, and solutions while driving operational excellence. Serving Customers Across Heart-Felt Life Events 3
Slide 4: Q2 2018 Summary
Q2 2018 Summary • Sales of approximately $2.9 billion, flat versus Q2 2017, slightly below our model • Continued strong growth in customer-facing digital channels • Diluted EPS of $0.36 per share, in-line with our model • Continued growth of cash and investments, even after funding our operations, c
Slide 5: Strategic Initiatives Positioning Our Company for Long Term Success
Strategic Initiatives Positioning Our Company for Long Term Success Key Areas of Focus Initiatives Update Decorative Furnishings Assortment/ Engagement/ . Sales grew ~18% YTD FY18 (BBB/bbB – US/Canada) Offering Marketing . Focus on creating efficiencies and driving profitability in the category
Slide 6: Strengthen Position as a Leader in College
6 Strengthen Position As a Leader in College Position Strengthen Curated Assortment: Expert Picks/ Innovative Product College Registry Hold & Pack Campus Checklist Interactive Checklist Pass College Savings Program Key Focus Area: Focus Area: Key and expansive product Build service in-st
Slide 7: Value Optimization
Value Optimization Delivering value to our customers and our Company through strategy and execution Key Focus Areas: • Drive revenue and profitability • Deploy new tools to execute omnichannel pricing and promotion strategies o Dynamic pricing o Markdown strategies o Online and In-store pricing stra
Slide 8: Supply Chain Optimization
Supply Chain Optimization Targeting speed and freight-savings opportunities Key Focus Areas: • Store Supply Chain: o Optimize the location and number of consolidation and cross-dock facilities operated o Reduce transportation costs • Ecommerce Fulfillment: o Optimize direct-to-customer delivery spee
Slide 9: BEYOND+ Membership Key Focus Areas and Early Results
Key Focus Areas: Early Results: • 20% off entire purchase every time • BEYOND+ members are among our you shop (standard coupon most valuable customers exclusions apply) o Shopping 2.5-times more than • Free standard shipping – with no our average customer minimum purchase o Generating 4-times higher
Slide 10: Technology System Enhancements
Technology System Enhancements Driving Foundational Improvements Key Focus Areas: • FY18 Major System Deployments: o Enterprise Order Management System Upgrade o New Point-of-Sale System . Rollout complete for BBB/bbB/Harmon . Rollout to remaining concepts in FY19 o New Human Capital Management Syst
Slide 11: Q2 2018 Financials
Q2 2018 Financials ke 2° ae BEDBATH& 11 BEYOND
Slide 12: Q2 2018 P&L Summary
Q2 2018 P&L Summary (amounts in millions, except comp %, and per share data) Three Months Ended Sept. 1, 2018 % of Sales Aug. 26, 2017 % of Sales Change Comp Sales % (a) (0.6) (2.6) Net Sales $2,935 100.0 $2,936 100.0 Gross Profit 989 33.7 1,069 36.4 (2.7)(b) SG&A Expenses 910 31.0 900 30.6(c) 0.4 O
Slide 13: Q2 2018 Balance Sheet & Capital Allocation Highlights
Q2 2018 Balance Sheet & Capital Allocation Highlights Cash Position • Continued growth of cash and investments o Cash and investments of $1.1 billion at end of quarter, increase of approximately $532 million from Q2 2017 Inventory • Retail inventory reduction of approximately 1.7% at end of Q2 2018
Slide 14: Fiscal 2018 Modeling Assumptions
Fiscal 2018 Modeling Assumptions Consolidated Net Sales • To be down slightly Comparable Net Sales • To be relatively flat • Strong growth in customer-facing digital channels Gross Margin • Deleverage due to continued investment in customer value proposition, including impact from the Beyond+ and Co