Bed Bath & Beyond, Inc. · NYSE:BBBY
Bed Bath & Beyond — Q3 2018 Earnings Presentation
14 slides from Bed Bath & Beyond's earnings presentation, Jan 9, 2019
Slide 1: Fiscal 2018 Third Quarter Earnings Call
Exhibit 99.2 Fiscal 2018 Third Quarter Earnings Call January 9, 2019
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. 3
Slide 4: Q3 2018 Summary
Q3 2018 Summary • Net sales increase of approximately 2.6%, primarily due to calendar shift of post-Thanksgiving week into the third quarter and out of the fourth quarter, partially offset by actions during the quarter in support of a stronger bias towards driving profitability improvement • Comp sa
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 Assortment/ Engagement/ • Front-End Optimization (FEO) Offering Marketing • Next Generation Store • Decorative Furnishings Services/ Operational Experiences Excellence 5
Slide 6: Front-End Optimization (FEO)
Front-End Optimization (FEO) A re-platforming of our digital commerce platform* Key Benefits of FEO: • A responsive design • New features and/or sections can be implemented within and across all digital channels more quickly and cost-effectively • Improved page load performance • Cleaner, simplified
Slide 7: Next Generation Store (BBB)
Next Generation Store (BBB) Re-imagining the in-store experience • As many as 40 lab stores will continually iterate and deliver new experiences in: o Assortment o Visual merchandising o Store layout/operations • 18 lab stores initiated • Assessing early learnings and successes to determine where th
Slide 8: Accelerate Growth of Decorative Furnishings
Accelerate Growth of Decorative Furnishings The Trusted Expert for Whole Home Decorating • Decorative Furnishings are being expressed in >70 BBB stores (furniture vignettes), with plans to expand to ~150 stores in 2019 • Bee & Willow Home Collection, the first of 6 in-house brands to be introduced i
Slide 9: Our Transformation Beyond 2019
Our Transformation Beyond 2019 • Our intent is to continue to put resources behind deepening our identity as a data-driven, analytics, and technology company • We will better represent whole home and heart-felt life events, and better inspire our customers through a more robust decorative furnishing
Slide 10: Q3 2018 Financials
Q3 2018 Financials 10
Slide 11: Q3 2018 P&L Summary
Q3 2018 P&L Summary (amounts in millions, except comp %, and per share data) Three Months Ended Dec. 1, 2018 % of Sales Nov. 25, 2017 % of Sales Change Comp Sales % (a) (1.8) (0.3) Net Sales $3,032 100.0 $2,955 100.0 Gross Profit 1,004 33.1 1,041 35.2 (2.1) (b) SG&A Expenses 954 31.5 933 31.6 0.1 (c
Slide 12: Q3 2018 Balance Sheet & Capital Allocation Highlights
Q3 2018 Balance Sheet & Capital Allocation Highlights Cash Position • Continued growth of cash and investments o Cash and investments of ~$1.0 billion at end of quarter, increase of ~$460 million from end of Q3 2017 Inventory • Reduced retail inventories by~6% at end of Q3 2018 vs. end of Q3 2017 Ca
Slide 13: Fiscal 2018 Modeling Assumptions
Fiscal 2018 Modeling Assumptions Consolidated Net Sales • To decrease in the low-single-digit percentage range Comparable Sales • To decrease about 1% • Strong sales growth in customer-facing digital channels Gross Margin • Deleverage primarily due to continued investment in customer value propositi
Slide 14: Fiscal 2019 Preliminary Assumptions
Fiscal 2019 Preliminary Assumptions Comparable Sales • Expect low-single-digit percentage decline Operating Profit • Expect to be similar to fiscal 2018 (as a % of net sales) Capital Expenditures • Expect to be similar to fiscal 2018 Diluted EPS • Expect to be about the same as fiscal 2018 14