Bed Bath & Beyond, Inc. · NYSE:BBBY
Bed Bath & Beyond — Q2 2022 Earnings Presentation
18 slides from Bed Bath & Beyond's earnings presentation, Sep 29, 2022
Slide 1: Second Quarter Fiscal 2022 Earnings Presentation
BED BATH & BEYOND 1 Mark Tritton, President & Chief Executive Officer Gustavo Arnal, Executive Vice President, Chief Financial Officer First Quarter Fiscal 2022 Earnings Presentation June 29, 2022 (PERIOD ENDING May 28, 2022) Second Quarter Fiscal 2022 Earnings Presentation September 29, 2022 (PERIO
Slide 2: Forward-looking statements
BED BATH & BEYOND 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, our progress and anticipated progress towards our long-term objectives, as well as more generally the status of our futur
Slide 3: Agenda
BED BATH & BEYOND 3 Agenda Key Highlights Q2’22 Results (ending August 27th) Strategic Update Outlook Commentary Appendix
Slide 4: Second Quarter Highlights
BED BATH & BEYOND 4 Second Quarter Highlights Consistent with our recent communication, Net Sales of approx. $1.44B and Comparable1 sales of (26)% Bed Bath & Beyond banner Comparable1 Sales decline of (28)% reflecting legacy merchandise assortment, out of stocks, and continued trends in customer
Slide 5: Q2'22 Results
5BED BATH & BEYOND Q2’22 RESULTS
Slide 6: Second Quarter Results – Key Financial Metrics
BED BATH & BEYOND 6 Total Comp1 Sales vs. Q2’21 -26% Net Sales $1.44B Adj. Gross Margin2 27.7% Adj. EBITDA2 ($168)M Total Liquidity $0.5B (Current Liquidity $0.85B) Second Quarter Results – Key Financial Metrics BB&B: -28% bbBABY: -High Teens% Q2’FY22 RESULTS PERIOD ENDING AUGUST 27, 2022 Banner Com
Slide 7: Net Sales to Comparable Sales vs. LY
BED BATH & BEYOND 7 Comparable Sales -28% -2% -26% Net Sales to Comparable Sales vs. LY (Q2’22 vs. Q2’21) • Total Net Sales decline of -28%, including -2% impact from previous store fleet optimization • Comparable1 sales decline of -26% primarily driven by legacy merchandise assortment, out of stock
Slide 8: Adjusted Gross Margin Bridge – Q2'21 to Q2'22
BED BATH & BEYOND 8 Q2’22 Adj. Gross Margin Q2’21 Adj. Gross Margin Q2’22 Adj. Gross Margin (excl. transient costs) Product Margin +100bps Supply Chain Costs -380bps Supply Chain Costs -100bps 27.7% 34.0% 31.3% Note: numbers may not foot due to rounding *Not expected to continue longer term Adjusted
Slide 9: Cash Flow & Liquidity
BED BATH & BEYOND 9 Q1’22 Total Cash & Investments $0.2B Operating Cash Flow ($0.2B) Investing & Financing Cash Flow2 $0.2B Q2’22 Total Cash & Investments $0.2B Cash Flow & Liquidity Q2’FY22 RESULTS PERIOD ENDING AUGUST 27, 2022 ¹ As presented on August 31, 2022 update with financing closed on Septe
Slide 10: Strategic Update
10BED BATH & BEYOND STRATEGIC UPDATE
Slide 11: Recapturing market share by better serving our customers
BED BATH & BEYOND 11 Recapturing market share by better serving our customers through an exceptional shopping experience BUSINESS & STRATEGY UPDATE Leveraging new Brand org structure to drive sales and recapture market share across both Stores and Digital o Deploying new H.O.M.E. customer experien
Slide 12: Driving Growth Through buybuy BABY's Differentiated Customer Offering
BED BATH & BEYOND 12 Driving Growth Through buybuy BABY’s Differentiated Customer Offering BUSINESS & STRATEGY UPDATE Offering customers unique products and services to drive organic growth o Working with new and well-known National Brands to secure exclusive items and lines o Launching Owned Bran
Slide 13: Outlook Commentary
13BED BATH & BEYOND OUTLOOK COMMENTARY
Slide 14: Qualitative Guidance Fiscal 2022
BED BATH & BEYOND 14 Q u a li ta ti v e G u id a n c e FISCAL 2022 Comp Sales vs. LY Decline in 20% Range; Improvement in 2H vs. 1H (early Q3’QTD trends similar to Q2 largely as anticipated and reflective of ongoing management of legacy inventory) Adjusted SG&A Approx. $250M below LY reflecting Cost
Slide 15: Footnotes and Non-GAAP Information
BED BATH & BEYOND 15 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 t
Slide 16: Q2'22 Non-GAAP Reconciliation
BED BATH & BEYOND 16 Three Months Ended August 27, 2022 Excluding Reported Loss on Sale of Businesses Loss on extinguishment of debt Restructuring and Transformation Expenses Impairments charges Total income tax impact Total Impact Adjusted Gross Profit $ 398,262 $ — $ — $ — $ — $ — $ — $ 398,262 Gr
Slide 17: Q2'21 Non-GAAP Reconciliation
BED BATH & BEYOND 17 APPENDIX Q2’21 Non-GAAP Reconciliation Three Months Ended August 28, 2021 Excluding Reported Loss on Sale of Businesses Loss on extinguishment of debt Restructuring and Transformation Expenses Impairment charges (Gain) loss on sale of property Total income tax impact Total Impac
Slide 18: Mark Tritton, President & Chief Executive Officer Gustavo Arnal, Executive Vice President, Chief Financial
BED BATH & BEYOND 18 Mark Tritton, President & Chief Executive Officer Gustavo Arnal, Executive Vice President, Chief Financial Officer First Quarter Fiscal 2022 Earnings Presentation June 29, 2022 (PERIOD ENDING May 28, 2022) Second Quarter Fiscal 2022 Earnings Presentation September 29, 2022 (PERI