#1BED BATH & BEYOND October 1, 2020 Fiscal 2020 Q2 Results June-July-August (May 31st - August 29th) BED BATH & BEYOND#2forward looking statements This press release contains forward-looking statements, including, but not limited to, the Company's progress and anticipated progress towards its long-term objectives, the future impact of the novel coronavirus (COVID-19), the potential impact and success of its strategic restructuring program, and its current estimates and expectations for financial performance for future periods. 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, preliminary, and similar words and phrases, although the absence of those words does not necessarily mean that statements are not forward- looking. The Company's actual results and future financial condition may differ materially from those expressed in any such forward-looking statements as a result of many factors. Such factors include, without limitation: general economic conditions including the housing market, a challenging overall macroeconomic environment and related changes in the retailing environment; risks associated with COVID-19 and the governmental responses to it, including its impacts across the Company's businesses on demand and operations, as well as on the operations of the Company's suppliers and other business partners, and the effectiveness of the Company's actions taken in response to these risks; consumer preferences, spending habits and adoption of new technologies; demographics and other macroeconomic factors that may impact the level of spending for the types of merchandise sold by the Company; civil disturbances and terrorist acts; unusual weather patterns and natural disasters; competition from existing and potential competitors across all channels; pricing pressures; liquidity; the ability to achieve anticipated cost savings, and to not exceed anticipated costs, associated with organizational changes and investments, including the Company's strategic restructuring program; the ability to attract and retain qualified employees in all areas of the organization; the cost of labor, merchandise and other costs and expenses; potential supply chain disruption due to trade restrictions, and other factors such as natural disasters, such as pandemics, including the COVID-19 pandemic, political instability, labor disturbances, product recalls, financial or operational instability of suppliers or carriers, and other items; the ability to find suitable locations at acceptable occupancy costs and other terms to support the Company's plans for new stores; the ability to establish and profitably maintain the appropriate mix of digital and physical presence in the markets it serves; the ability to assess and implement technologies in support of the Company's development of its omnichannel capabilities; the ability to effectively and timely adjust the Company's plans in the face of the rapidly changing retail and economic environment, including in response to the COVID-19 pandemic; uncertainty in financial markets; volatility in the price of the Company's common stock and its effect, and the effect of other factors, including the COVID-19 pandemic, on the Company's capital allocation strategy; risks associated with the ability to achieve a successful outcome for its business concepts and to otherwise achieve its business strategies; the impact of intangible asset and other impairments; disruptions to the Company's information technology systems including but not limited to security breaches of systems protecting consumer and employee information or other types of cybercrimes or cybersecurity attacks; reputational risk arising from challenges to the Company's or a third party product or service supplier's compliance with various laws, regulations or standards, including those related to labor, health, safety, privacy or the environment; reputational risk arising from third-party merchandise or service vendor performance in direct home delivery or assembly of product for customers; changes to statutory, regulatory and legal requirements, including without limitation proposed changes affecting international trade; changes to, or new, tax laws or interpretation of existing tax laws; new, or developments in existing, litigation, claims or assessments; changes to, or new, accounting standards; and foreign currency exchange rate fluctuations. Except as required by law, the Company does not undertake any obligation to update its forward-looking statements. BED BATH & BEYOND#3participants BED BATH & BEYOND Mark Tritton President & CEO Cindy Davis CBO; President, Decorist Gustavo Arnal CFO & Treasurer John Hartmann COO; President, buybuy Baby 3#4BED BATH & BEYOND 1₁ agenda 1) 2) 3) Performance Highlights & Strategic Update (CEO) FY 2020 Q2 Results (May-June-July) (CFO) Commercial Update (CBO) Operations Update (COO) 5) Q&A#5Q2 performance highlights & strategy update BED BATH & BEYOND#6Q2 PERFORMANCE HIGHLIGHTS & STRATEGIC UPDATE significant improvement in key performance metrics Comp Sales Growth +6% VS LY BED BATH & BEYOND Digital Comp Growth Cash Generation $>750M +89% VS LY Adj. Gross Margin Gross Debt -30% Reduction VS FY20 Q1 +200bps VS LY Adj. EBITDA -2x Higher than Debt +36% VS LY Strong Liquidity 6#7Q2 PERFORMANCE HIGHLIGHTS & STRATEGIC UPDATE comparable sales turn positive Quarterly comparable sales 10% 5% 0% -5% -10% BED BATH & BEYOND -15% -20% FY16 FY16 FY16 FY16 Q1 Q2 Q3 Q4 FY17 Q1 FY17 FY17 FY17 FY18 FY18 FY18 Q2 Q3 Q4 Q1 Q2 Q3 FY18 Q4 * * FY20 Q1: No comparable sales reported due to extensive store closures FY19 FY19 FY19 FY19 FY20 FY20 Q1 Q2 Q3 Q4 Q1 Q2#8Q2 PERFORMANCE HIGHLIGHTS & STRATEGIC UPDATE building a modern, durable business model BED BATH & BEYOND PURPOSE make it easy to feel at home PRINCIPLES: PILLARS: product Refine & amplify an exciting omni- channel assortment through a Millennial lens that re-builds authority and preference through differentiation and curation PROFICENCIES: PRACTICES: stay curious & bold customer inspired price Invest in & clarify compelling value through more choice at opening prices, relevant own brands, and clear price communications to sharpen our specialty for less proposition and win-back customers O reconstruct & modernize our operating model and decision-making to drive and leverage efficiency, effectiveness and profitable growth be transparent & collaborate MISSION re-establish our authority and be the preferred omni-channel home destination driven by teams consistently delivering balanced durable growth omni always promise Clarify & deepen our relationship with customers by connecting, engaging and motivating them to strengthen loyalty and lifetime value stabilize & optimize performance and decision-making driven by data, analytics and machine-learning. balancing magic and math embrace & drive change people powered place Accelerate & optimize connecting with, inspiring and energizing our customer by becoming a truly omni-always retailer to serve their preferred shopping needs invest in & construct platforms and partners that scale personal experiences, offers, content and connections act with empathy & integrity performance driven people Create & sustain a talent engine and culture that attracts. retains and develops high performance teams who consistently serve & deliver operational excellence and business results operationalize category and mission roles/management across functions, channels and partners/suppliers to align investment, activity and attention champion diversity & community BED BATH & BEYOND PERFORMANCE OVERALL EBITDA MARGIN OO TOTAL SHAREHOLDER RETURN VOICE OF THE CUSTOMER TOTAL INVESTMENT PORTFOLIO (STORES & DIGITAL)#9Q2 PERFORMANCE HIGHLIGHTS & STRATEGIC UPDATE growth strategy unlocking strong financial performance Sales Improvement ✓ Solid Comp Sales Growth of -6% ✓ First reported positive comp since FY16 Q4 ✓ Strong Digital Comp Sales growth of -89% ✓ Strong Back-to- College omni- channel sales trends, up -21% BED BATH & BEYOND Stronger Margin and Profit Performance ✓ Adj. Gross margin increased -200 bps vs FY19 Q2 Adj. EBITDA increased -36% Stronger Cash Flow Generation Generated > $750mn in cash flow Reduced inventory levels by -8% vs FY20 Q1 Optimized Capital Structure ✓ Paid down -$236mn bank loan portion of ABL Repurchased -$300mn of senior notes outstanding through bond tender offer ✓ Reduced gross debt by -30% vs. FY20 Q1, pivoted to net cash position ✓ Liquidity of -$2.2bn, almost 2x higher than debt Accelerated Restructuring Plan Announced major realignment of organizational structure; Expect -$150mn in annualized pre-tax cost savings Store Network Optimization project includes the closure of -200 mostly BBB stores over the next 2 years Announced 1/3 of 200 BBB stores to close by end of FY20 Completed sale of PMall as part of strategic review of assets#10Q2 results June-July-August (May 31st - August 29th) BED BATH & BEYOND SOLA 10#11Q2 2020 FINANCIAL RESULTS BED BATH & BEYOND ● • ● financial performance Solid comparable sales growth of -6%, led by significantly strong digital comp sales growth of -89% Adj. Gross Margin increased -200bps, driven primarily by: Favorable product mix, including lower coupon expense and better optimization of promotion & markdowns Leverage of distribution and fulfillment costs Partially offset by higher digital channel mix, including higher net direct-to-customer shipping expense Adj. EBITDA increased by 36% to $199mn or 7.4% margin Improved cost of sales Adj. SG&A expenses decreased Strong cash flow generation >$750mn Enhanced balance sheet, including -$2.2bn of liquidity and a -30% reduction in gross debt vs FY20 Q1 Inventories (at cost) declined -8% vs FY20 Q1 11#12Q2 2020 FINANCIAL RESULTS unlocked strong cash flow generation of >$750mn; total liquidity of -$2.2bn Q2 actions enhanced cash & liquidity: . Strong cash generation of >$750mn Cash flow from operations of -$543mn from earnings and working capital 0 Cash flow from investing of - $208mn includes proceeds from the sale of PMALL of -$245M and includes CAPEX spending of -$37mn Increased Liquidity Secured new $850mn ABL Facility for additional liquidity, if needed 0 0 BED BATH & BEYOND Cashflow generation >$750mn $1.8bn -$0.6mn $1.2bn Post FY20 Q1 Liquidity -$543mn Cash Flow from Operations Cash and Investments -$208mn >$750mn Cash Flow from Investing ¹ ABL -$221mn -$236mn (-$457mn) Cash Flow from Financing 2 $2.2bn -$0.7mn $1.5bn FY20 Q2 Liquidity ¹ Cash Flow from Investing includes -$245mn related to the sale of PMALL, net of CAPEX 2 Cash Flow from Financing includes -$236mn related to ABL repurchase and - $221mn related to bond repurchase 3 Repurchased -$300mn (principal value) of senior notes 12#13Q2 2020 FINANCIAL RESULTS pivoted from a net debt position of $0.5bn to a net cash surplus position of $0.3bn Q2 actions optimized debt balance: Significant cash flow generation Paid down-$236mn bank loan portion of ABL Facility Reduced gross debt by -30%, or $0.5bn vs FY20 Q1, from $1.7bn to $1.2bn Repurchased -$300mn (principal value) of senior notes through successful bond tender offer BED BATH & BEYOND FY20 Q1 vs FY20 Q2-net debt $1.7bn $0.2bn $1.5bn FY20 Q1 Gross Debt Balance -($1.2bn) FY20 Q1 Cash Balance Senior Notes $0.5bn FY20 Q1 Net Debt Balance Bank loan $1.2bn FY20 Q2 Gross Debt Balance -($1.5bn) FY20 Q2 Cash Balance Cash & Investments ($0.3bn) FY20 Q2 Net Cash Balance 13#14Q2 2020 FINANCIAL RESULTS Q2 key p&l metrics • Comparable sales growth of -6%, led by significantly strong digital comp sales growth of -89% • Net sales declined -1%, partially due to the divestiture of One Kings Lane . Adj. Gross Margin increased ~200bps, driven primarily by: Favorable product mix, including lower coupon expense and better optimization of promotion & markdowns Leverage of distribution and fulfillment costs Partially offset by higher digital channel mix, including higher net direct-to-customer shipping expense - Adj. SG&A as a % of sales decreased ~10bps to 31.5% vs FY19 Q2, driven primarily by payroll, advertising and payroll-related expenses Adj. EBITDA increased 36% to $199mn Adj. EPS of $0.50, increased 47% vs. $0.34 in FY19 Q2 BED BATH & BEYOND (in millions, except per share data) Comparable Sales Growth Net Sales Gross Margin¹ SG&A Margin¹ EBITDA¹ EPS - Diluted¹ ¹Adjusted Three Months Ended FY2019 Q2 FY2020 Q2 -7% 6% $2,719 $2,688 33.9% 35.9% 31.6% $147 $0.34 31.5% $199 $0.50 Diff -1% 200bps - 10bps 36% 47% 14#15Q2 2020 FINANCIAL RESULTS Q2 monthly sales trends • The Company began its phased approach to store re-openings from May through June, and by early July, nearly all stores were open Comparable sales were positive in each month of the quarter, and digital comp growth was consistently >80%, which offset sales declines in stores • Percentage of digital sales increases to -32% vs -18% in FY19 Q2 BED BATH & BEYOND Sales trends by month Comps Net Sales June July August -18% -7% FY19 Q2 -82% ■ Stores Penetration Digital Penetration 2% 1% Digital Comp +89% Q2 6% -1% FY20 Q2 -32% -68% Stores Penetration Digital Penetration. 15#16Q2 2020 FINANCIAL RESULTS gross margin expansion · Adj. Gross Margin increased ~200bps to 35.9% vs 33.9% in FY19 Q2 driven primarily by: - Favorable product mix, including lower coupon expense and better optimization of promotion & markdowns Leverage of distribution and fulfillment costs Partially offset by higher digital channel mix, including higher net direct-to-customer shipping expense BED BATH & BEYOND FY19 Q2 vs FY20 Q2-gross margin bridge 33.9% FY19 Q2 Adj. Gross Margin 150bps Product Mix/Lower Coupon Expense / Optimization of Promo & Markdowns 190ps -200bps Leverage of Distribution/ Fulfillment Costs (135ps) Channel Mix / DTC Shipping Expense 35.9% FY20 Q2 Adj. Gross Margin 16#17Q2 2020 FINANCIAL RESULTS transformation underway to re-establish authority in home Transformation plan expected to deliver between $250mn to $350mn in annualized EBITDA improvement over the next 2 to 3 years vs fiscal 2019 Significant workforce reduction and major organizational realignment in August 2020; estimated to generate future annual pre-tax cost savings of approximately $150mn, excluding one-time costs Planned closure of -200 mostly BBB stores over the next two years under Store Network Optimization Project expected to generate -$100mn in annualized savings Planned savings of -$200mn from product sourcing through work with existing vendors ● · Reinvestment of between approximately $150mn to $200mn of the expected cost savings into future growth initiatives Potential of between -$350mn to-$450mn to be unlocked through sale of non-core assets (including sale of PMall) Further improvement of working capital through the removal of about $1B of inventory at retail ($0.5bn at cost) from within BBB stores over the next 24 months BED BATH & BEYOND 17#18commercial update BED BATH & BEYOND 18#19COMMERCIAL UPDATE destination for college Sales of college specific product increased 21% season-to-date (5/1/20-9/8/20) Back-to-College campaign designed to showcase new branding strategy and enhanced customer value proposition Informed by insights and market data Integrated merchandising and marketing plan included: Better curated assortments More competitive pricing and compelling value (in-store / online) Enhanced storytelling and increased targeting Remained flexible and agile to pivot plans as season unfolded Top trending product categories for college: Kitchen Electrics (+>160%), Kitchen Housewares (-+250%), Drinkware and Flatware (>+650%) College from Home campaign provided inspiration to create authentic college spaces at home in addition to the value and ease of our Back to College experience BED BATH & BEYOND college from home Modern Glam 19#20operations update BED BATH & BEYOND Men dhater for#21OPERATIONS UPDATE driving omni-always transformation The end-to-end modernization of the Company's technology infrastructure is driving substantial digital growth and strong customer adoption of new services like Buy-Online-Pickup-In- Store (BOPIS) and Curbside Pickup ● Expanded relationship with Google Cloud to accelerate Company's omni-always transformation and deliver a more agile, responsive, and customer-inspired shopping experience Leveraging the Company's unique data and insights in Home, Baby and Health & Wellness and deploy a range of platform solutions to: - Further personalize the shopping experience for customers Enhance fulfilment capacity Optimize merchandise planning and demand forecasting BED BATH & BEYOND 21#22WRAP UP inaugural (virtual) investor day oct. 28th @9am EDT Building a modern, durable platform for success How are we rebuilding authority in the Home? Strategic framework of transformation Experienced leadership team ■ ■ Foundational capabilities What does value creation look like? Multi-year financial plan Strategic investments planned Capital allocation framework ■ ■ ■ BED BATH & BEYOND LOL MP 22#23WRAP UP Q2 performance - transformation is underway Comp Sales Growth +6% VS LY BED BATH & BEYOND Adj. EBITDA +36% VS LY Cash Generation $>750M 23#24appendix BED BATH & BEYOND gogo 1 SEPTEMBER 30, 2020 24#25APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Adjusted Net Earnings (Loss) per Diluted Share Reported net earnings (loss) per diluted share $ Impairments, severance, incremental inventory reserve for future markdowns, costs associated with portfolio optimization strategy, restructuring and transformation initiative costs, gain on sale of business and gain on extinguishment of debt Adjusted net earnings per diluted share August 29, 2020 BED BATH & BEYOND Three Months Ended $ 1.75 $ August 31, 2019 (1.12) (1.25) 1.46 0.50 $ 0.34 * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 second quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation table above and that follow. 25#26APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Adjusted Gross Profit Reported gross profit Adjustments: Incremental inventory reserve for future markdowns Total adjustments Adjusted gross profit Three Months Ended BED BATH & BEYOND August 29, 2020 $ 987,537 (23,000) (23,000) $964,537 August 31, 2019 $726,988 193,735 193,735 $920,723 * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 second quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation table above and that follow. 26#27APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Adjusted Gross Margin Reported gross margin Adjustments: Incremental inventory reserve for future markdowns Total adjustments Adjusted gross margin Three Months Ended BED BATH & BEYOND August 29, 2020 36.7 % (0.8)% (0.8)% 35.9 % August 31, 2019 26.7 % 7.2 % 7.2 % 33.9% * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 second quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation table above and that follow. 27#28APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Adjusted Selling, General and Administrative Expenses Reported selling, general and administrative expenses Adjustments: Severance costs Costs associated with portfolio optimization strategy Total adjustments Adjusted selling, general and administrative expenses Three Months Ended BED BATH & BEYOND August 29, 2020 $ 850,218 (3,750) (3,750) $ 846,468 August 31, 2019 $ 880,889 (22,537) (22,537) $ 858,352 * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 second quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation table above and that follow. 28#29APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Adjusted Selling, General and Administrative Expenses (SG&A) as a Percent of Net Sales Reported SG&A as a percent of net sales 31.6% Adjustments: Severance costs Costs associated with portfolio optimization strategy Total adjustments Adjusted SG&A as a percent of net sales Three Months Ended August 29, August 31, 2020 2019 BED BATH & BEYOND % (0.1)% (0.1)% 31.5 % 32.4% (0.8)% % (0.8)% 31.6% * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 second quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation table above and that follow. 29#30APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA Reported net earnings (loss) Depreciation and amortization Interest expense, net Gain on extinguishment of debt Provision (benefit) for income taxes EBITDA Pre-tax Adjustments: Incremental inventory reserve for future markdowns Impairments (a) Restructuring and transformation initiative costs Severance costs Gain on sale of business Costs associated with portfolio optimization strategy Total pre-tax adjustments Adjusted EBITDA BED BATH & BEYOND Three Months Ended August 29, 2020 $ $ 217,900 85,277 23,371 (77,038) 106,310 355,820 (23,000) 29,176 23,128 (189,528) 3,750 (156,474) 199,346 August 31, 2019 $ $ (138,765) 84,430 16,342 (59,835) (97,828) 193,735 28,357 22,537 244,629 146,801 (a) Impairments include tradename and store asset impairments related to the North American Retail reporting unit. * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 second quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation table above and that follow. 30#31APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Adjusted Effective Income Tax Rate Reported effective income tax rate Impairments, severance, incremental inventory reserve for future markdowns, costs associated with portfolio optimization strategy, restructuring and transformation initiative costs, gain on sale of business and gain on extinguishment of debt Adjusted effective income tax rate Three Months Ended August 29, 2020 BED BATH & BEYOND 32.8% 1.5% 34.3 % August 31, 2019 30.1% (21.1)% 9.0% * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 second quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation table above and that follow. 31#32APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Adjusted Net Earnings (Loss) Reported net earnings (loss) Pre-tax Adjustments: Incremental inventory reserve for future markdowns Impairments (a) Restructuring and transformation initiative costs Severance costs Gain on sale of business Gain on extinguishment of debt Costs associated with portfolio optimization strategy Total pre-tax adjustments Taximpact of adjustments Total adjustments, after tax Adjusted net earnings Three Months Ended BED BATH & BEYOND August 29, 2020 $ 217,900 $ (23,000) 29,176 27,128 (189,528) (77,038) 3,750 (229,512) 73,863 (155,649) 62,251 August 31, 2019 (138,765) 193,735 28,357 22,537 244,629 (63,964) 180,665 41,900 (a) Impairments include tradename and store asset impairments related to the North American Retail reporting unit. * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 second quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation table above and that follow. 32