Bed Bath & Beyond, Inc. · NYSE:BBBY
Bed Bath & Beyond — Q3 2019 Earnings Presentation
14 slides from Bed Bath & Beyond's earnings presentation, Jan 8, 2020
Slide 1: Fiscal 2019 Third Quarter Earnings Call
Fiscal 2019 Third Quarter Earnings Call January 8, 2020 BED BATH & BEYONID> Exhibit 99.2
Slide 2: Forward-looking statements
This presentation contains forward-looking statements, including, but not limited to, the Company's progress and anticipated progress towards its long-term objectives. Many of these forward-looking statements can be identified by use of words such as may, will, expect, anticipate, approximate, estim
Slide 3: Agenda
First 66 Days of New President & CEO 4 Approach to Setting Future Strategy 5 Actions Taken 6 FY 2019 Q3 Financial Results Summary 7 Outlook 10 Non-Routine Items 11 Non-GAAP Reconciliation Tables 12 3
Slide 4: First 66 Days of New President & CEO
Arrived in Union, New Jersey on November 4, 2019 Fully Immersed in the Business ▪ Assessing operations, portfolio, capabilities and culture ▪ Engaging with associates – received warm reception and open invitation to create and lead change ▪ Engaging with customers – listened and responded directly t
Slide 5: Approach to Setting Future Strategy
Objectively looking at the business and making bold pivots to reconstruct, renovate and restore our Company ❑ ❑ ❑ • We are experiencing short-term pain • We are making bold and broad-based changes to modernize our business • We have a solid balance sheet • We will have a relentless focus on our cust
Slide 6: Actions Taken: Transformation Efforts and Near-Term Priorities
We remain focused on accelerating our extensive transformation efforts and driving against our near-term priorities to generate savings and reinvest for future growth Reviewing and Optimizing Our Asset Base Completed Real Estate Sale-Leaseback Transaction • Generated net proceeds of >$250M • Propert
Slide 7: FY 2019 Q3 Financial Results Summary
▪ On a GAAP basis, a net loss per diluted share of ($0.31) vs. net earnings per diluted share of $0.18 in the prior year period, which included a benefit of $0.16 from a gain on the sale of a building • Reported net loss includes a net benefit of $0.07 per diluted share consisting of a favorable adj
Slide 8: Three Months Ended November 30, 2019 Results
Three Months Ended November 30, 2019 % of Sales December 1, 2018 % of Sales % Change Comp Sales % (8.3) (1.8) Net Sales $2,759 100.0 $3,032 100.0 Gross Profit $890 (a) 32.3 $1,004 33.1 (0.8) (c) SG&A Expenses $932 33.8 $982 (b) 32.4 (1.4) (d) Operating (Loss) Profit ($42) (a) (1.5) $21 (b) 0.7 (2.2)
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Slide 10: Outlook
The Company expects its sales and profitability to remain Additional Information: pressured during FY 2019 Q4 • FY 2019 Q4 pre-tax earnings will include: – ~$11M of severance expense associated with extensive Considering these headwinds reflected in the Company’s results to date, leadership changes
Slide 11: Non-Routine Items
FY 2019 FY 2018 Non-Routine Item Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 YTD Incremental Inventory Reserve for Future - $194 ($24) $170 - - - - - Markdowns Severance Costs $39 $23 - $62 $9 $5 - - $14 Goodwill and Other $401 $28 $12 $441 - - - $510 $510 Impairments Shareholder Activity $8 - - $8 - - - - - Costs Gai
Slide 12: Reconciliation of Adjusted Gross Profit
Three Months Ended Nine Months Ended November 30, December 1, November 30, December 1, 2019 2018 2019 2018 Reconciliation of Adjusted Gross Profit Reported gross profit $ 913,837 $ 1,003,710 $ 2,528,004 $ 2,957,119 Adjustments: Incremental inventory reserve for future markdowns (23,915 ) — 169,820 —
Slide 13: Reconciliation of Adjusted SG&A Expenses
Three Months Ended Nine Months Ended November 30, December 1, November 30, December 1, 2019 2018 2019 2018 (in thousands, except per share Reconciliation of Adjusted Selling, General and Administrative Expenses as a Percent of Net Sales data) Reported selling, general and administrative expenses as
Slide 14: Reconciliation of Adjusted Net (Loss) Earnings
Three Months Ended Nine Months Ended November 30, December 1, November 30, December 1, 2019 2018 2019 2018 Reconciliation of Adjusted Net (Loss) Earnings Reported net (loss) earnings $ (38,552 ) $ 24,354 $ (548,402 ) $ 116,569 Pre-tax Adjustments: Incremental inventory reserve for future markdowns (