Bed Bath & Beyond, Inc. · NYSE:BBBY
Bed Bath & Beyond — Q4 2021 Earnings Presentation
30 slides from Bed Bath & Beyond's earnings presentation, Apr 13, 2022
Slide 1: Fourth Quarter Fiscal 2021 Earnings Presentation
Quarter Fiscal 2021 rnings Presentation 1OD ENDING FEBRUARY 26, 2022) lark Tritton, President & Chief Executive Officer Arnal, Executive Vice President, Chief Financial Officer April 13, 2022 ~ BED BATHE BEYONED> LD Via
Slide 2: Forward-looking statements
2 This presentation contains forward-looking statements within the meaning of Section 21 E of the Securities Exchange Act of 1934 including, but not limited to, the Company’s progress and anticipated progress towards its long-term objectives, as well as more generally the status of its future liquid
Slide 3: Agenda
Agenda * Q4’21 Results (ending Feb 26") * FY 2022 Outlook Commentary * Transformation Update " Appendix
Slide 4: Q4'21 Results
Q4’21 RESULTS
Slide 5: Fourth Quarter Highlights
Q4’'FY21 RESULTS PERIOD ENDING FEBRUARY 26, 2022 Fourth Quarter Highlights = Net Sales of $2,051M; Demand severely impacted by ongoing supply chain and inventory availability challenges = Group Comparable Sales decline of (12)%, negatively affected by an estimated $175 million, or high-single digit
Slide 6: Core banners performance
6 1 2 2 Note: The Company’s four Core banners include Bed Bath & Beyond, buybuy BABY, Harmon Face Values and Decorist.
Slide 7: Core banner net sales and comparable sales drivers
7 Divestitures • • • • • 1 • Fleet Optimization Note: The Company’s four Core banners include Bed Bath & Beyond, buybuy BABY, Harmon Face Values and Decorist. Stores Digital Core Banner Net Sales (excl. Divestitures) Comparable Sales Supply Chain Disruptions* Total Net Sales
Slide 8: Core business net sales mix
8 Note: Based on Core business 1 1 % of Net Sales in Q4’21 17% 8% 26% 11% 4% 66% 34% 100%
Slide 9: Financial results detail
9 Note: numbers may not add due to rounding ¹ Not expected to continue by end of 2022 • • •
Slide 10: Operating cash flow and total liquidity
10 Positive Operating Cash Flow Total Liquidity of $1.4B
Slide 11: FY 2022 Outlook Commentary
FY 2022 OUTLOOK COMMENTARY
Slide 12: Current trends and full year outlook
12 CURRENT TRENDS: 1Q22 FULL YEAR QTD trend: negative low-20s Sequential Improvement in 2H vs. 1H based on anticipated improvement in supply chain conditions Cost inflation headwinds to persist, not fully offset by pricing Modest expansion vs. LY based on 2H improvement Slightly lower $ spend vs. LY
Slide 13: FY21 (Year 1) Transformation Progress
FY21 (Year 1) TRANSFORMATION PROGRESS
Slide 14: Began Significant Transformation in 2021
FY21 TRANSFORMATION PROGRESS. Began Significant TRANSFORMATION in 2021 BED BATH & BEYOND PURPOSE make it easy to feel at home PRINCIPLES customerinspired — omni-always people powered _ performance driven PILLARS & PROFICIENCIES MISSION re-establish our authority and be the preferred omni-channel hom
Slide 15: Transformation initiatives and progress
15 ✓ Stores as fulfillment hubs ✓ Omni-always platform ✓ Invest in key projects for enhanced capabilities ✓ Partnerships: DoorDash, Uber, Shipt, Roadie ✓ Launched digital Marketplace ✓ Launched Cross-Banner checkout ✓ Remodel ~450 BBB stores ✓ Close ~ 200 BBB stores ✓ Approx. 130 to 150 remodels ✓ A
Slide 16: Three Pillars of Transformation
16 Three Pillars of Transformation ELEVATE EXPERIENCE: Overhauled websites with new look, reduced steps to checkout and AI-powered search UNLOCK OMNI-ALWAYS: launched BOPIS & curbside pickup services TRANSFORM TO DIGITAL FIRST: Upgraded tools and processes to improve speed to market Digital Sales pe
Slide 17: Store remodels
17 • Approx. 130 remodels across US & CANADA • Initiated approx. 130 remodels • Completed approx. 80 remodels • Sustained +MSD sales lift
Slide 18: Bed Bath & Beyond store closures
18 • Approx. 200 BBB closures (cumulative total program) • Completed more than 200 Bed Bath store closures • Sales transference above plan of 20%-25% Continuing to position our network for the future: ✓ Disciplined management of inventory and receipts ✓ Partnership with recognized liquidation servic
Slide 19: Kroger partnership
19 • Now live on Kroger.com • Offering an extensive selection of the most sought-after goods for home and baby products • Launching in select Kroger brick & mortar stores in 2022 • Branded shop-in-shop experience with exclusive Owned Brands and national brands
Slide 20: Owned brand launches
20 Bring your story to life Launched June 2021 Escape the noise Launched April 2021 Launched July 2021 Solutions for a well-kept home Launched May 2021 Home starts here Launched June 2021 Start with food. End with love. Launched March 2021 everyday comfort Launched October 2021 Designed for modern l
Slide 21: Owned Brands penetration
21 ✓ Ending Fiscal 2021 with Owned Brands penetration of approximately 25% ✓ Extending Owned Brands to the buybuy BABY business
Slide 22: buybuy BABY performance
22 Positive Net Sales growth with Sales exceeding $1.4B, above plan Continued market share gains Digital penetration of total BABY Sales Note: As shared during Investor Day 2020
Slide 23: Charting a Course for Greater Value
23 Charting a Course for Greater Value ✓ Increased digital capabilities ✓ Flexibility, agility and scalability ✓ Speed to market ✓ More efficient technology operations ✓ Shift spend towards innovation ✓ Improved return on technology investment ▪ 35-day store replenishment ▪ Vendor direct network wit
Slide 24: Share repurchases
24 $(25) $25 $75 $125 $175 $225 $275 Note: Dollar values of share repurchases reflect open market repurchases; Share repurchase program completed in March 2022 at approx. $990M
Slide 25: Appendix
APPENDIX
Slide 26: Quarterly net sales: reported and Core Go-Forward
26 • The following table shows a quarterly summary of the Company’s fiscal 2019 and 2020 net sales on both a Reported GAAP basis and on a Core Go-Forward basis, which excludes sales from divested banners. • The Company is providing this additional transparency to help analysts and investors gain fur
Slide 27: Non-GAAP definitions and reconciliation
27 1 Comparable Sales reflects the year-over-year change in sales from the Company's retail channels, including stores and digital, that have been operating for twelve full months following the opening period (typically six to eight weeks). Comparable Sales excludes the impact of the Company's store
Slide 28: Non-GAAP Reconciliation, Three Months Ended Feb 26, 2022
28 Non-GAAP Reconciliation (in thousands, except per share data) (unaudited) Three Months Ended February 26, 2022 Excluding Reported Loss on Sale of Businesses Restructuring and Transformation Expenses Impairment charges Total income tax impact Total Impact Adjusted Gross Profit $ 579,808 $ — $ 10,0
Slide 29: Non-GAAP Reconciliation, Three Months Ended Feb 27, 2021
29 Three Months Ended February 27, 2021 Excluding Reported Loss on Sale of Businesses Restructuring and Transformation Expenses Impairment Charges Total income tax impact Total Impact Adjusted Gross Profit $ 825,488 $ — $ 33,198 $ — $ — $ 33,198 $ 858,686 Gross margin 31.5 % — % 1.3 % — % — % 1.3 %
Slide 30: Fourth Quarter Fiscal 2021 Earnings Presentation
Quarter Fiscal 2021 rnings Presentation 1OD ENDING FEBRUARY 26, 2022) lark Tritton, President & Chief Executive Officer Arnal, Executive Vice President, Chief Financial Officer April 13, 2022 ~ BED BATH& * BEYONE>