Bed Bath & Beyond, Inc. · NYSE:BBBY
Bed Bath & Beyond — Q2 2019 Earnings Presentation
15 slides from Bed Bath & Beyond's earnings presentation, Oct 2, 2019
Slide 1: Fiscal 2019 Second Quarter Earnings Call
Fiscal 2019 Second Quarter Earnings Call October 2, 2019 ” BED BATH & + BEYONED
Slide 2: Forward-looking statements
This presentation contains forward-looking statements, including, but not limited to, the Company's outlook for its net sales and adjusted net earnings per diluted share and its progress and anticipated progress towards its long-term objectives. Many of these forward-looking statements can be identi
Slide 3: Agenda
Key Near-Term Priorities 4 New Proprietary Home Furnishing Brands 7 Q2 2019 Financial Results Summary 10 FY 2019 Financial Outlook 13 Non-GAAP Reconciliation Tables 14 3
Slide 4: Key Near-Term Priorities
1. Stabilizing sales and driving top-line growth 2. Resetting the cost structure 3. Reviewing and optimizing the Company’s asset base, including our portfolio of retail banners 4. Refining our organization structure 4
Slide 5: Stabilizing sales and driving top-line growth
A multi-pronged approach including near-term and longer-term strategies to create a noticeably different shopping experience and differentiated value proposition for our customers ▪ A rapid refresh of ~160 of highest volume and most profitable Bed Bath & Beyond stores is underway ▪ Investments in cu
Slide 6: Resetting the cost structure
Better align our cost structure with the current state of the business ▪ A comprehensive real estate optimization project underway ▪ Increase overall penetration of proprietary private label (PL) brands to differentiate – Plans to renegotiate all leases, including those with longer-dated lease terms
Slide 7: New Proprietary Home Furnishing Brands
First 3 of 6 in-house brands to be launched during 2019 and 2020 7
Slide 8: Reviewing and optimizing the asset base
▪ Plans to reduce up to $1B of inventory at retail ▪ Evaluating opportunities for sale lease back transactions ▪ Capitalize on heavy lease expiration cadence over the next couple of years, over the next 18 mos. – ~4M sq. ft of owned real estate, including both retail and including >400 leases across
Slide 9: Refining our organization structure
Ensure we have the right talent and expertise and right team structures in place to facilitate a connected and efficient organization ▪ Realigned organization structure to better support the transformation underway – All non-Bed Bath & Beyond business concepts now report to one leader, which streaml
Slide 10: Q2 2019 Financial Results Summary
▪ On a GAAP basis, a net loss per diluted share of ($1.12), including an unfavorable impact of approximately $1.46 per diluted share related to the first wave of transformational initiatives including, severance costs associated with the corporate workforce reduction and decision to outsource certai
Slide 11: Q2 2019 Adjusted Financial Results
Three Months Ended Adjusted (a) Adjusted (b) August 31, 2019 % of Sales September 1, 2018 % of Sales Change Comp Sales % (6.7) (0.6) Net Sales $2,719 100.0 $2,935 100.0 Gross Profit 921 33.9 989 33.7 0.2 (c) SG&A Expenses 858 31.6 905 30.8 (0.8) (d) (amounts in millions, except Operating Profit 62 2
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Slide 13: FY 2019 Financial Outlook
Current FY 2019 Full Year Guidance In Line With Most Recent Guidance Guidance Considerations (excludes goodwill and other impairments, severance and shareholder activity costs, • Comparable sales trends to date the inventory write down, incremental impact from tariffs, and other special items) • Cur
Slide 14: Non-GAAP Reconciliation Tables
Three Months Ended Six Months Ended August 31, September 1, August 31, September 1, 2019 2018 2019 2018 Reconciliation of Adjusted Gross Profit Reported gross profit $ 726,988 $ 988,561 $ 1,614,167 $ 1,953,409 Adjustments: Inventory write down 193,735 - 193,735 - Total adjustments 193,735 - 193,735
Slide 15: Non-GAAP Reconciliation Tables (continued)
Three Months Ended Six Months Ended August 31, September 1, August 31, September 1, 2019 2018 2019 2018 Reconciliation of Adjusted Selling, General and Administrative Expenses as a Percent of Net Sales Reported selling, general and administrative expenses as a percent of net sales 32.4% 31.0% 33.5%