Bed Bath & Beyond, Inc. · NYSE:BBBY
Bed Bath & Beyond — Q1 FY2022 Earnings Presentation
19 slides from Bed Bath & Beyond's earnings presentation, Jun 29, 2022
Slide 1: First Quarter Fiscal 2022 Earnings Presentation
Mark Tritton, President & Chief Executive Officer Gustavo Arnal, Executive Vice President, Chief Financial Officer First Quarter Fiscal 2022Earnings Presentation June 29, 2022 (PERIOD ENDING May 28, 2022) Harriet Edelman, Chair of the Board of Directors Sue Gove, Director & Interim Chief Executive O
Slide 2: Forward-looking statements
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 future liquidity and fina
Slide 3: Agenda
Agenda Executive Transition Q1’22 Results (ending May 28th) Commercial Update & Outlook Commentary Appendix
Slide 4: Executive Transition
ExecutiveTransition
Slide 5: Executive Leadership Changes
Executive Leadership Changes Q1’FY22 RESULTS PERIOD ENDING MAY 28, 2022 Name / Title Qualifications Prior Experience More than 30 years of retail industry experience including President and CEO of Golfsmith and COO of Zale Corporation Independent Director of Board since May 2019; served two years on
Slide 6: Q1'22 Results
Q1’22 RESULTS
Slide 7: First Quarter Highlights
First Quarter Highlights Net Sales of approx. $1.5B; Comparable1 sales of (23)% consistent with early quarter trends, as previously shared Bed Bath & Beyond banner Comparable1 Sales decline of (27)% reflecting rapid shift in consumer spending patterns and declining demand in Home sector buybuy BABY
Slide 8: First Quarter Results – Key Financial Metrics
Total Comp1 Sales -23% vs. Q1’21 Net Sales $1.5B Adj. Gross Margin2 23.8% 32.2% excl. -840bps transient costs (inv. markdown charge & port-related fees) Adj. EBITDA2 ($224)M Total Liquidity $0.9B First Quarter Results – Key Financial Metrics Note: The Company’s four Core banners include Bed Bath & B
Slide 9: Comparable Sales
Comparable Sales Net Sales to Comparable Sales vs. LY (Q1’22 vs. Q1’21) Total Net Sales decline of -25%, including -2% impact from previous store fleet optimization Comparable1 sales decline of -23% Bed Bath & Beyond -27%; buybuy BABY -MSD%; Harmon positive Driven by declining demand in destination
Slide 10: Adjusted Gross Margin Bridge – Q1'21 to Q1'22
Note: numbers may not foot due to rounding *Not expected to continue by end of 2022 Adjusted2 Gross Margin Bridge – Q1’21 to Q1’22 Adj. Gross Margin2 of 23.8% reflects (-840bps) impact from transient costs related to an inventory markdown charge and port-related fees Adj. Gross Margin2 continues to
Slide 11: Cash Flow & Liquidity
Cash Flow & Liquidity Q1’22 RESULTS PERIOD ENDING may 28, 2022 ABL $0.7B2 Total Liquidity of $0.9B as of Q1 ¹ Footing impacted by rounding 2 Including $102.3M of outstanding LCs and $200.0M of borrowings as of Q1’2022
Slide 12: Commercial Update & Outlook Commentary
COMMERCIAL UPDATE & OUTLOOK COMMENTARY
Slide 13: Current Update: Commercial Update
Current Update Digital & Customer Engagement Launched retail media network, MOMENTS AD NETWORK™ Launched reimagined loyalty program, WELCOME REWARDS™ Store Remodel & Fleet Optimization Approx. 50 remodels (BBB) initiated in Q1’22 Current total of approx. 200 remodels representing approx. 30% of sale
Slide 14: Qualitative Guidance Fiscal 2022
Qualitative Guidance FISCAL 2022 Comp Sales vs. LY Q2’QTD trends: negative 20s; Improvement in 2H vs. 1H based on inventory optimization, including incremental clearance activity Adjusted SG&A Lower $ vs. LY reflecting aggressive actions to align cost structure to sales Capital Expenditures Approxim
Slide 15: Appendix
APPENDIX
Slide 16: Definitions and Non-GAAP Information
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 ne
Slide 17: Q1'22 Non-GAAP Reconciliation
APPENDIX Q1’22 Non-GAAP Reconciliation (1) If a company is in a net loss position, then for earnings per share purposes, diluted weighted average shares outstanding are equivalent to basic weighted average Three Months Ended May 28, 2022 Excluding Reported Gain on Sale of Businesses Gain on extingui
Slide 18: Q1'21 Non-GAAP Reconciliation
APPENDIX Q1’21 Non-GAAP Reconciliation Three Months Ended May 29, 2021 Excluding Reported Loss on Sale of Businesses Loss on extinguishment of debt Restructuring and Transformation Expenses Impairment charges Total income tax impact Total Impact Adjusted Gross Profit $ 633,694 $ — $ — $ 47,344 $ — $
Slide 19: Presenters and Investor Relations
Mark Tritton, President & Chief Executive Officer Gustavo Arnal, Executive Vice President, Chief Financial Officer First Quarter Fiscal 2022Earnings Presentation June 29, 2022 (PERIOD ENDING May 28, 2022) Harriet Edelman, Chair of the Board of Directors Sue Gove, Director & Interim Chief Executive O