#1BED BATH & BEYOND January 7, 2021 Fiscal 2020 Q3 Results September- October-November (August 30th November 28th) BED BATH & BEYOND#2forward 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, the status of its future liquidity and financial condition, and its outlook for the Company's fiscal 2020 fourth quarter and for its 2021 fiscal year. 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 and store network optimization strategies; 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, 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; 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 2#3participants BED BATH & BEYOND Mark Tritton President & CEO Rafeh Masood EVP & Chief Digital Officer Gustavo Arnal CFO & Treasurer John Hartmann COO; President, buybuy Baby 3#4BED BATH & BEYOND agenda 1) Q3 Performance Highlights & Transformation Update 2) Financial Outlook 3) Digital & Commercial Update 4) Operations Update 4#5Q3 performance highlights & transformation update BED BATH & BEYOND 5#6Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE Q3 key takeaways "The consistent execution of our growth strategy is unlocking improved financial performance and we delivered a second consecutive quarter of comparable sales and profit growth" - CEO Mark Tritton Consistently Executing on Strategy 2nd Consecutive Quarter of Strong Comparable Sales Growth ● +5% Core Bed Bath & Beyond banner¹ (BBB) Comp sales growth; +2% Total Enterprise Comp sales growth; +94% Core BBB digital comp growth; +77% Total Enterprise digital comp growth Market share gains in destination Bed category, with improving trends in Bath and Kitchen categories ✓ Gross Margin Expansion +310bps to 35.4% Adj. Gross Margin vs LY EBITDA Increases • +168% Adj. EBITDA vs LY to $121mn BED BATH & BEYOND (1) (2) Strengthening Balance Sheet ✓ Positive cash flow generation $244mn cash flow² ✓ Stronger balance sheet with significant gross debt reduction $0.5bn Gross Debt3 reduction ✓ Cash and liquidity levels increase further $1.5bn Cash & Investments; $2.2bn Total Liquidity4 Bed Bath & Beyond is among the Company's four core banners which also include buybuy BABY, Harmon Face Values and Decorist. Cash Flow includes cash flow from operations + cash from investing activities, net of CAPEX. ¤×¤ Unlocking Shareholder Value Creation ✓Enhancing FY 2021 EBITDA outlook with a range $500mn to $525mn ✓ Reiterating a larger and accelerated share repurchase program Share Repurchase Program: up to $825mn from up to $675mn ASRs 1+2: $375mn expected to be completed by the end of FY20 Q4 (2/27/21) Note: ASR-1($225mn): 4.5mn shares delivered in FY20 Q3; Remainder expected to be delivered by 1/28/21. ASR-2 ($150mn): Expected to be initiated and completed in FY20 Q4. (3) Gross Debt includes bond debt, revolver/ABL borrowing, and operating and finance lease liabilities. (4) Total Liquidity includes cash & investments and availability from asset-backed lending credit facility. 6#7Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE executing on strategy, delivering consistent sales and EBITDA growth Second Consecutive Quarter of Comp Sales Growth Total Enterprise Comp BED BATH & BEYOND +2% vs LY Core BBB Banner Comp +5% vs LY 32.3% Consistent Gross Margin Expansion / EBITDA Growth Adj. Gross Margin Adj. EBITDA FY19 Q3 35.4% FY20 Q3 +310bps VS LY $45mn Total Enterprise Digital Comp FY19 Q3 $121mn +77% vs LY FY20 Q3 +168% VS LY Core BBB Banner Digital Comp +94% vs LY 7#8Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE strong cash flow generation, balance sheet improvement and capital return to shareholders (1) BED BATH & BEYOND (2) (3) Inventory Reduction (30%) VS LY Positive Cash Flow Generation Cash Flow¹ $244mn Gross Debt Reduction ² ($0.5bn) vs Q2 Cash & Investments Balance Sheet Strengthened / Return to Shareholders ($1.0bn) vs Q1 $1.5bn Strong Total Liquidity 3 $2.2bn Share Repurchase Increase From $675 to $825mn Cash flow generation includes cash flow from operations ($44mn) and cash flow from investing driven by proceeds from non-core banners and real estate monetization, net of capital expenditures ($200mn). Gross Debt includes bond debt, revolver/ABL borrowing, and operating and finance lease liabilities. Total Liquidity includes cash & investments and availability from asset-backed lending credit facility. 8#9Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE transformation and execution unlocking strong shareholder value creation Consistent Comparable Sales Growth ✓ 5% Comp Sales growth in core Bed Bath & Beyond banner; +2% total enterprise growth; 2nd consecutive quarter of Comp Sales growth ✓94% digital Comp Sales growth in Bed Bath & Beyond banner; 77% total enterprise growth; digital drives quarterly sales performance ✓36% of total Digital Sales fulfilled by stores, including 16% from BOPIS; new omni-always capabilities gaining traction ✓5% reduction in Q3 Net Sales due to transformation activity including planned divestures and store fleet optimization BED BATH & BEYOND Margin Expansion & EBITDA Growth ✓310bps increase in Adj. Gross Margin vs LY, led by optimized product promo/ coupon mgt and product mix ✓$41mn reduction in SG&A expense from cost optimization efforts ✓168% increase in Adj. EBITDA vs LY to $121mn, led by Gross Margin expansion Positive Cash Flow Generation ✓$244mn in positive cash flow¹ vs negative cash flow LY, including monetization of non-core banners ✓$0.8bn (30%) lower Inventory vs Q3 LY, driven in part by banner divestitures and store fleet optimization (1) Cash Flow includes cash flow from operations + cash from investing activities, net of CAPEX. (2) Announced definitive agreement to sell CPWM FY20 Q4. Fast-paced Transformation ✓5 non-core banners sold and ✓-$1bn total reduction in >$600mn in proceeds in FY20: One Kings Lane, PMall, Christmas Tree Shops, Harbor Linen, and Cost Plus World Market² Gross Debt³:~$0.5bn reduction in operating and finance lease liabilities related to banner divestitures and store closures in Q3; -$0.5bn reduction in debt from bond tender offers in Q2 ✓-120 BBB store closures planned in FY20 as part of store network optimization plans to close ~200 BBB stores by the end of FY21; will result in significant reshape of sales base and store footprint Stronger Capital Structure ✓ $500 to $525mn enhanced FY21 EBITDA range, driven by portfolio transformation and significant reshape of P&L ✓ $0.3bn strong Net Cash surplus position: $1.5bn in Cash and Equivalents less $1.2bn in bonds $2.2bn in Total Liquidity4; -2x higher than bond debt (3) Gross Debt includes bonds, revolver/ABL borrowing, and operating and finance lease liabilities (4) Total Liquidity includes cash & investments and availability from asset-backed lending credit facility. 9#10Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE Q3 key performance metrics Comparable Sales increase, led by 5% growth in core Bed Bath & Beyond banner¹ (BBB); total enterprise comp +2% growth ● ● • Net sales change of -5% as planned, due to significant portfolio transformation, including non-core banner divestitures and store closing activity related to network optimization initiative ● ● ● Digital drives Q3 performance, with strong total enterprise growth +77%; core BBB digital growth +94% ● Adj. Gross Margin increases 310bps, driven primarily by: Optimization of promotion & markdowns Favorable product mix Leverage of distribution and fulfillment costs Partially offset by higher digital channel mix, including higher shipping costs SG&A expense decreases ($41mn), from lower payroll & related expenses and lower advertising expenses Adj. EBITDA increased 168%, primarily due to higher gross margin Positive cash flow generation³ of $244mn including monetization of non-core banner assets Gross Debt reduction and strengthened balance sheet -($0.5bn) reduction in operating and finance lease liabilities from divestitures and store closures $1.5bn of cash & investments and $2.2bn of total liquidity5 BED BATH & BEYOND Total Enterprise Comp Sales Core BBB Banner Comp Sales¹ Net Sales Gross Margin² SG&A EBITDA² EPS - Diluted² Cash Flow Generation³ Gross Debt Reduction Total Liquidity5 (1) (2) (3) (4) (5) Three Months Ended FY2019 Q3 FY2020 Q3 $2,759mn 32.3% $932mn $45mn ($0.38) $2,618mn 35.4% $891mn $121mn $0.08 $244mn ($0.5bn) $2.2bn Bed Bath & Beyond is among the Company's four core banners which also include buybuy BABY, Harmon Face Values and Decorist. Adjusted Diff 2% 5% -5% 310bps $41mn 168% $0.46 Cash flow generation includes cash flow from operations ($44mn) and cash flow from investing, net of capital expenditures ($200mn). Gross Debt includes bonds, revolver/ABL borrowings and operating and finance lease liabilities. Total Liquidity includes cash & investments and availability from asset-backed lending credit facility. 10#11Q3 comp sales growth trends ● ● Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE ● Positive comparable sales growth led by strong digital comp sales in both core Bed Bath & Beyond banner¹ (BBB) and total enterprise, offsetting sales decline in stores Sales momentum continued in Q3 and holiday season, in spite of COVID-related headwinds reflected broadly across retail landscape in lower foot traffic trends and shipping capacity constraints Percentage of digital sales increased to 31% versus 19% in FY 2019 Q3 BED BATH & BEYOND Total Enterprise Comps BBB Comps Digital Comps BBB Digital Comps FY19 Q3 19% Quarterly sales trends (1) Bed Bath & Beyond is among the Company's four core banners which also include buybuy BABY, Harmon Face Values and Decorist. Percentage of digital sales increased 81% ■ Q3 - Stores Penetration ■ Digital Penetration Q3 2% 5% 77% 94% FY20 Q3 31% 69% Q3 - Stores Penetration Digital Penetration 11#12Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE strong Q3 sales performance in core Bed Bath & Beyond banner ● Core Bed Bath & Beyond banner¹ (BBB) delivered solid comp sales growth of 5%, led by strong digital growth and higher sales in Top 5 destination categories BBB digital comp sales grew 94%; store comp sales declined 14% +11% comp sales growth of Top 5 destination categories (combined), representing 2/3 of core Bed Bath & Beyond banner sales Market share gains in destination Bed category, with improving trends in Bath and Kitchen categories (NPD data October/November 2020) Top 5 Destination Categories Home Organization Kitchen Food Prep Bedding Bath Indoor Décor Total Comp Sales Growth (combined) BED BATH & BEYOND Comp Sales Growth % of Net Sales 16% 13% 10% 8% 7% 11% 6% 21% 19% 10% 9% 65% (1) Bed Bath & Beyond is among the Company's four core banners which also include buybuy BABY, Harmon Face Values and Decorist. 12#13Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE holiday sales performance Black Friday US Retail Market Performance Reported by 3rd Party Data Providers Cyber Monday 6-week holiday period Nov. 15-Dec. 27 8-week holiday period Nov. 1 - Dec. 25 BED BATH & BEYOND US Bed Bath & Beyond results were in-line or stronger than broader US retail market (1) (2) (3) In-Store Traffic -52% vs LY (1) -34-36% vs LY (1) Online Spending +22%(2) vs LY +15% vs LY Total Retail Sales +2% (3) vs LY (2) According Sensormatic Solutions data. According to Adobe Analytics data. According to Mastercard Spending Pulse report. (4) (5) 5-day holiday period Thanksgiving to Cyber Monday US Bed Bath & Beyond Comparable Sales Performance4 6-week holiday period Nov. 16-Dec. 27 In-Store Traffic -24% vs LY -23% VS LY Based on preliminary unaudited results. Bed Bath & Beyond comp sales demand includes orders placed and not yet fulfilled. Online Spending +69% vs LY +95% vs LY Total Comp Sales Demand5 +double-digit% vs LY Total Comp Sales +low-single digit% vs LY 13#14Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE gross margin expansion driven by key ongoing interventions Adj. Gross Margin increases 310bps to 35.4% vs 32.3% LY, driven primarily by: Optimization of promotion & markdowns Favorable product mix - - Leverage of distribution and fulfillment costs Partially offset by higher digital channel mix, including higher shipping costs BED BATH & BEYOND FY19 Q3vs FY20 Q3-gross margin bridge 32.3% FY19 Q3 Adj. Gross Margin 180bps Promotion & Markdowns/ Coupon Mgt 120bps 210bps 310bps Leverage of Product Distribution/ Mix Fulfillment Costs (200bps) Channel Mix / DTC Shipping Expense 35.4% FY20 Q3 Adj. Gross Margin 14#15Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE unlocked cash flow generation of $244mn; effective return of $225mn to shareholders; maintained strong total liquidity of $2.2bn Q3 actions maintained strong cash position: Solid cash flow generation of $244mn ● ● Cash flow from operations of $44mn from earnings and working capital improvement Cash flow from investing of $200mn includes net proceeds from non-core asset sales (Christmas Tree Shops, Harbor Linen and DC in Florence, NJ), net of $38mn of CAPEX spending Strong total liquidity Maintained $1.5bn cash & investments balance, even after $225mn ASR FY20 Q3 vs FY19 Q3-positive cash flow generation ($mns) FY2020 Q3 Cash Flow from Operating Activities $44 1 Cash Flow from Investing Activities ¹ $200 Cash Flow Generation $244 Cash Flow from Financing Activities ² BED BATH & BEYOND ($227) FY20 Q2 vs FY20 Q3 - total liquidity $2.2bn $0.7bn $1.5bn Post FY20 Q2 Total Liquidity $44mn $244mn Positive Cash Flow Cash Flow from Operations $200mn Cash and Investments Cash Flow from Investing ¹ ABL (1) Cash Flow from Investing includes $238mn related to sale of non-core assets (CTS, HL, DC/Florence), net of $38mn of CAPEX; CPWM definitive agreement announced FY20 Q4. (2) Cash Flow from Financing includes $225mn related to ASR initiated in Oct. 2020. ($227mn) Cash Flow from Financing ² 2 ASR $2.2bn $0.7bn $1.5bn FY20 Q3 Total Liquidity 15#16improved debt balance driven by reductions in long-term debt and operating lease liabilities ● Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE ● Actions taken to reduce gross debt¹ balance by ~$1bn: Reduction in operating and finance lease liabilities by -$0.5bn in Q3 (non-core banner divestitures and store closures) Reduction in debt by ~$0.5bn in Q2 (bond tender offers, revolver/ABL borrowings) Positive net cash position with $1.5bn cash balance, less $1.2bn in bond debt Strong total liquidity2 position of $2.2bn FY20 Q2 vs FY20 Q3 - gross debt BED BATH & BEYOND (2) $3.6bn $2.4bn $1.2bn FY20 Q2 Gross Debt¹ Balance (1) Gross Debt includes bonds, revolver/ABL borrowing, and operating lease liability. Total Liquidity includes cash & investments and availability from asset-backed lending credit facility. ($0.5bn) Operating & Finance Lease Liabilities Senior Notes $3.1bn $1.9bn $1.2bn FY20 Q3 Gross Debt Balance $1.5bn FY20 Q3 Cash Balance Operating & Finance Lease Liabilities $1.2bn FY20 Q3 Gross Debt Balance ex Op/Fin Leases $0.3bn FY20 Q3 Net Cash Balance Cash & Investments $2.2bn $0.7bn $1.5bn FY20 Q3 Total Liquidity ABL 16#17Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE significant portfolio transformation during fiscal 2020 what we said 6 mos. ago Expect to unlock between $350 to $450mn through asset sales what we have achieved $600mn+ where we are today 4 Non-core banner monetization (and Florence, NJ warehouse) BED BATH & BEYOND Focused on core portfolio BEYOND 5 (1) Cost Plus World Market definitive agreement announced FY20 Q4. Banners divested¹ ONE KINGS LANE NEW YORK Personalization COST PLUS WORLD MARKET. HARBOR LINEN A BED BATH & BEYOND COMPANY WORLDMARKET.COM MALL.COM Christmas Tree Shops That! BED BATH & buybuy BABY FACE VALUES decorist 17#18Q3 PERFORMANCE HIGHLIGHTS & TRANSFORMATION UPDATE unlocking shareholder value creation through balanced capital allocation Capital Allocation Principles ✓ Investing for growth and transformation ✓ Ensuring financial resilience ✓ Returning cash to shareholders BED BATH & BEYOND Reiterate Additional Accelerated Share Repurchase Program Expanded Total Share Repurchase Program (ASR) to up to $825mn from up to $675mn during the next 3 years ● ● ● ● October 28th: Launched $225mn Accelerated Share Repurchase program (ASR-1) December 14th: Announced Approval of new $150mn Accelerated Share Repurchase program (ASR-2) ASR 1+2, which total $375mn, are expected to be completed by no later than fiscal year-end 2020 Reflects balanced capital allocation principles, strong liquidity and confidence in strategic growth plan Note: ASR-1($225mn): 4.5mn shares delivered in FY20 Q3; Remainder expected to be delivered by 1/28/21. ASR-2 ($150mn): Expected to be initiated and be completed in FY20 Q4. 18#19financial outlook BED BATH & BEYOND 19#20FINANCIAL OUTLOOK fiscal 2021 updated financial outlook BED BATH & BEYOND portfolio transformation is now complete¹ Tightening Revenue Range $8.0bn to $8.2bn Recapture & Sustain Sales vs FY20 (1) Cost Plus World Market definitive agreement announced FY20 Q4. Reiterating Gross Margin Approx. 35% +200bps vs Proforma FY19 of 33% Enhancing EBITDA to a Range $500mn to $525mn vs Proforma FY19 of $425mn 20#21FINANCIAL OUTLOOK portfolio transformation drives a significant reshape of P&L Expect approx. $3bn reduction in net sales vs FY 2019 after banner divestitures and store closures 5 banner divestitures¹: ● — ONE KINGS LANE NEW YORK # of retail stores: Personalization BED BATH & BEYOND MALL.COM $11.2bn >500 store closures planned (including 340 from divestitures and 200 from store network optimization by the end of FY 2021) 2019 Actual Net Sales 1,500 Christmas Tree Shops FY 2021 Comparable Sales Guidance: Recapture & Sustain Sales Q1 (non-comp): RECAPTURE full sales opportunity vs prior year sales impact from store closures due to COVID-19 Q2-Q4: SUSTAIN sales level vs FY20 strong base Guidance assumes flat comparable sales for financial planning purposes Base 2019 Net Sales bridge (1) Cost Plus World Market definitive agreement announced FY20 Q4. Notes: Numbers may not add due to rounding; for illustrative purposes only. That! ($2.2bn) Non-Core Asset Divestitures Impact HARBOR LINEN ABD BATH&BEYOND COMPANY COST PLUS WORLD MARKET Unique. authentic and always attordable. $9.0bn FY2019 Proforma Net Sales -1,100 ($0.9 bn) Store Closure Impact $8.0bn to $8.2bn FY2021 Projected Net Sales -960 21#22FINANCIAL OUTLOOK gross margin expansion and SG&A reduction Gross Margin bridge 33% 2019 Actual Gross Margin 33% FY2019 Proforma Gross Margin BED BATH & BEYOND + Margin Improv. From Product Sourcing + Product Mix Including Own Brands + Promotion & Markdowns/ Coupon Mgt Channel Shift & Increased Freight Cost Impact 35% FY2021 Projected Gross Margin (1) Fiscal 2021 Depreciation & Amortization estimated to be approximately $230 million. Notes: Numbers may not add due to rounding; for illustrative purposes only. SG&A bridge $3.6bn ($0.8bn) 32% 2019 Actual SG&A $2.8bn 31% Non-Core FY2019 Asset Proforma Divestitures SG&A Impact Store Closure Impact SG&A Cost Restructuring Program + Reinvest. Reduction in Depreciation & Amort.¹ $2.5bn 31% FY2021 Projected SG&A 22#23FINANCIAL OUTLOOK EBITDA outlook enhanced to range of between $500mn to $525mn driven mostly by gross margin expansion and cost efficiencies EBITDA bridge-key drivers of expansion (approximate figures) BED BATH & BEYOND $465mn 2019 Actual EBITDA Non-Core Asset Divestitures $425mn FY2019 Proforma EBITDA 5% Margin $75mn Store Closure Impact $125mn Product Sourcing $235mn Merchandising SG&A Cost Reinvestment Improv From Restructuring Spend Programs Memo: Fiscal 2021 Depreciation & Amortization is estimated to be approximately $230 million. Notes: Numbers may not add due to rounding; for illustrative purposes only. ($175mn) ($175mn) Channel Shift & Increased Freight Cost Impact $500mn to $525mn FY2021 Projected EBITDA Mid-single-digit Margin 23#24FINANCIAL OUTLOOK portfolio transformation and store closures drive significant balance sheet improvement and gross debt reduction FY2020 actions reduce liabilities by ~$1bn ~$0.5bn reduction in gross debt from bond tender offers in FY20 Q2 ~$0.5bn reduction in operating and finance lease liabilities from banner divestitures and store closures (FY20 Q3+Q4) BED BATH & BEYOND Notes: Numbers may not add due to rounding; for illustrative purposes only. -$4bn $2.4bn $1.5bn FY19 Debt/Lease Liabilities -($0.5bn) Change in Debt Q2 Operating and Finance Lease Liabilities -$1b reduction -($0.5bn) Bond debt Change in Operating & Finance Lease Liabilities Q3 -$3bn $1.9bn $1.2bn FY 2020 Projected Debt/Lease Liabilities 24#25FINANCIAL OUTLOOK portfolio transformation significant improvement -$1bn (at retail) inventory reduction underway: non-core asset divestitures store closures from fleet optimization BED BATH & BEYOND Notes: Numbers may not add due to rounding; for illustrative purposes only. and store closures drive in inventory -$.5bn reduction at cost (-$1bn at retail) reduction $2.1bn FY19 Inventory Balance $1.6bn FY21 Projected Inventory Balance 25#26FINANCIAL OUTLOOK fast-paced transformation underway to re-establish authority in home ● Providing additional visibility on P&L reshape after planned divestitures and store closures Enhancing FY 2021 EBITDA outlook to range of between $500mn to $525mn significant and fast-paced portfolio transformation FY21 vs FY19 -500 store closures from 1,500 to -960 BED BATH & BEYOND 5 banner divestitures¹ from 9 to 4 $8.0bn to $8.2bn FY21 projected revenue range comp sales gross margin adj. EBITDA adj. EBITDA margin capital investments inventory position gross debt/ EBITDA ratio (Moody's²) return to shareholders Fiscal 2021 Outlook Update Recapture & Sustain sales Q1 (non-comp): Recapture lost sales opportunity from store closures in 2020 due to COVID-19 Q2-Q4: Sustain sales level vs FY20 strong base -35% $500mn to $525mn mid-single digit $400mn+ $1bn reduction (at retail) vs. FY19 <3.5x Share repurchases Initial $225mn ASR Add'l $150mn ASR (2) Moody's credit ratio includes leases. (1) Cost Plus World Market definitive agreement announced FY20 Q4. Notes: The Company is not providing a reconciliation of its guidance with respect to Adjusted EBITDA because the Company is unable to provide this reconciliation without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence, the financial impact, and the periods in which the adjustments may be recognized. 26#27digital & commercial update BED BATH & BEYOND 27#28DIGITAL & COMMERICAL UPDATE digital drives third quarter performance Digital comparable sales up 77%; core Bed Bath & Beyond banner digital sales +94% 2.2mn new customers to digital ● ● ● ● ~21% of Bed Bath & Beyond customers placing 2+ orders vs 16% in FY19 Q3 Online conversion for Bed Bath & Beyond improved 25% vs. FY19 Q3 -36% of total digital sales fulfilled by stores Buy Online Pickup in Stores (BOPIS) accounted for ~16% of total digital sales BED BATH & BEYOND Digital business is on target to deliver $3B+ in FY20¹ (1) Based on current trends. On 28#29DIGITAL & COMMERICAL UPDATE omni-always strategy is working 16% 60% BED BATH & BEYOND BOPIS percentage of total digital sales BOPIS orders ready within 30 minutes 80% 1.2m BOPIS Net Promotor Score vs. 49% in May (when service launched) customers used BOPIS in FY20 Q3 12:49 bedbathandbeyond.com BED BATH & BEYOND store pickup ✓ New York City (... D T Free Store Pickup at New York City (Chelsea) Find in another Store Same Day Delivery to 10010 Change Zip Search Ready in 2 hours. Free Curbside Pickup! Standard Shipping to 10010 Change Zip same day delivery Order by 4pm Order by 4pm, get it today! Free delivery on orders over $39 .LTE Pick It Up Deliver It Add to Cart Estimated Delivery 12/26 - 12/31 29#30DIGITAL & COMMERICAL UPDATE fast-paced transformation resulting in improved online experience 25% lift in Bed Bath & Beyond conversion YOY optimized mobile New mobile framework Relaunched mobile apps 12:45 BED BATH & BEYOND You're shopping Manalapan, NJ FLAVORS OF FALL bake it easy from $4.99 Search Get at the eart for making ta treat Baking & decorating tools 107% BED BATH & BEYOND bakeware sets Bring your deliciou 7s load times 74% faster YoY during Cyber 5 (Homepage) increase in mobile revenue expanded same day delivery Available on Bed Bath & Beyond.com and buybuyBABY.com 2 Marketplaces - Instacart.com and Shipt.com HarmonFaceValues.com added to Instacart BED BATH & BEYOND shop shop by room stry same day delivery is convenient and easy! 80% same day delivery o&outp checkout BED BATH & BEYOND how same day delivery works deliver dvory of US households have access to Instacart and Shipt marketplaces S 100+ improvements 3-step checkout reduced time to place order Overhauled entire checkout journey Added new payment types Have an account? Sign In and save time. Shipping & Gift Options First Name Delivery Address Last Name BED BATH & BEYOND + Add Your Company Name Coupon(s) & Payment Street Address City Apt/Suite/Floor (Optional) State Contact Info Zip Code 3 Order Review 9 28% D: BED BATH & BEYOND Have an account? Sign In and save time. 1 Shipping & Gift Options 2 Coupon(s) & Payment increase in cart conversion rate YoY 3 Order Review 30#31DIGITAL & COMMERICAL UPDATE our efforts are resonating with our customers 2.2mn 200mn visits, growing 50% YoY New digital customers 17pts Increase in Net Promoter Score for digital YoY BED BATH & BEYOND 800k app downloads BED BATH & BEYOND store pickup v Manalapan Search same day delivery Shop by Room bedroom bathroom 122 JANUARY 6, 2021 "Easy to order online. My order was ready very quickly. Curbside pickup was fast." 12/5/20 "I am thrilled to have same day delivery during this pandemic. Thank you BB& B. You remain my favorite retailer!" 12/5/20 "Great website, item in stock, easy checkout." 12/5/20 31#32operations update BED BATH & BEYOND BEDBATH&BEYOND APAR 12030 Smile A VAN NO PARKING 15 NO#33OPERATIONS UPDATE exceptional progress across operations ✓ Supply chain reformation Added secondary national carrier and several regional parcel delivery carriers to help alleviate COVID-related shipping constraints and additional freight cost pressures Continued to focus on health & safety of associates working fulfillment centers ✓ Optimizing real estate portfolio ■ Store network optimization program: closure of ~200 underperforming Bed Bath & Beyond banner stores is well underway Pace of targeted closings in fiscal 2020 has accelerated from ~70 to ~120 stores Remain on track to complete full 200 store closure program during fiscal 2021 Store remodel program: advanced from initial prototype phase to active iteration within 10 stores in Houston markets O Highlighting destination categories including Bed, Bath, Kitchen and Store & Organization O Expect to complete proof-of-concept stage by end of February 2021; Next wave of renovations to include 130 to 150 stores in fiscal 2021 O O O BED BATH & BEYOND Total investments of $250mn over the next 3 years in store remodels of >450 stores, representing 60% of revenue D ద్వా.. BB&B 33#34OPERATIONS UPDATE store remodel program Houston test market underway bed nen w BED BATH & BEYOND prep CLL ca VSUS BEDDING HUB KITCHEN bath refr & re BATH 34#35OPERATIONS UPDATE buybuy BABY delivers strong digital growth ● ● Represented 10% of total Company net sales in FY20 Q3 Strong growth in digital, up 40%, representing >50% of total BABY sales Enhanced digital experience with convenient payment options, including After Pay and Apple Pay; upgraded and relaunched BABY app in November 2020 Gained nearly 2mn online customers YTD, +45%; >.5mn new online customers in FY20 Q3 New omni-channel capabilities such as BOPIS/curbside services represented 13% of total BABY digital orders in FY20 Q3 Top performing categories in Q3 include Toys, Playroom, Furniture and Apparel BED BATH & BEYOND 35#36Q3 total enterprise summary BED BATH & BEYOND 36#37Q3 TOTAL ENTERPRISE SUMMARY Q3 performance Total Enterprise Comp +2% VS LY BED BATH & BEYOND consistent execution of strategy Digital Comp +77% VS LY Adj. EBITDA +168% VS LY Positive Cash Flow¹ $244mn VS ($62mn) LY (1) Cash flow generation includes cash flow from operations ($44mn) and cash flow from investing driven by proceeds from non-core banners and real estate monetization, net of capital expenditures ($200mn). 37#38appendix BED BATH & BEYOND JANUARY 6, 2021 38#39APPENDIX fiscal 2020 Q3 net income bridge - non-gaap reconciliation* (in thousands, except for share data) (unaudited) Gross profit Gross margin Restructuring and transformation initiative expenses (Loss) earnings before provision for income taxes Tax (benefit) provision Effective tax rate Net (loss) income Net earnings (loss) per share- Diluted Weighted average shares outstanding- Basic Weighted average shares outstanding- Diluted $ BED BATH & BEYOND Reported 956,567 36.5% 16,770 (140,654) (65,213) 46.4 % (75,441) (0.61) 122,885 122,885 (¹) Loss on sale Impairment of businesses 113,909 on assets held for sale 53,976 Three Months Ended November 28, 2020 $ 113,909 $ 53,976 $ Restructuring and transformation Impairment expenses charges 13,929 0.6 % (16,770) 30,699 30,699 Excluding $ 4,021 Benefit from reduction of incremental markdown reserves (44,319) (1.7)% (44,319) Total income tax impact 72,415 (5.6)% Total impact $ (30,390) (1.2)% (16,770) 158,286 72,415 (5.6)% (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 shares outstanding. Adjusted $ 926,177 35.4 % 4,021 $ (44,319) $ (72,415) $ 85,871 $ S 17,632 7,202 40.8% 10,430 0.08 122,885 124.642 * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 third 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. 39#40APPENDIX fiscal 2020 Q3 reconciliation of net (loss) income to adjusted EBITDA (in thousands, except for share data) (unaudited) Net (loss) income Depreciation and amortization Interest expense Tax (benefit) provision EBITDA EBITDA as % of net sales Reported BED BATH & BEYOND Loss on sale Impairment on assets businesses held for sale Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA $ (75,441) $ 113,909 $ 93,706 17,805 (65,213) (29,143) Restructuring and transformation expenses Three Months Ended November 28, 2020 53,976 $ $ 113,909 $ 53,976 $ Impairment charges 30,699 $ (8,000) Excluding 22,699 $ 4,021 $ 4,021 Benefit from reduction of incremental markdown reserves (44,319) (44,319) Total income tax impact $ (72,415) 72,415 Total impact 85,871 (8,000) 72,415 $ 150,286 Adjusted 10,430 85,706 17,805 7,202 121,143 * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 third 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. 4.6 % 40#41APPENDIX fiscal 2020 Q3 net income bridge - non-gaap reconciliation* (in thousands, except for share data) (unaudited) Gross profit Gross margin (Loss) earnings before provision for income taxes Tax benefit Effective tax rate Net (loss) income Net earnings (loss) per share - Diluted Weighted average shares outstanding- Basic Weighted average shares outstanding- Diluted S BED BATH & BEYOND Reported 913,837 33.1 % (46,937) (8,385) 17.9 % (38,552) (0.31) 123,099 123,099 (¹) Loss on sale of businesses % Impairment on assets held for sale S Three Months Ended November 30, 2019 Excluding Restructuring and transformation Impairment expenses charges % 11,781 11,781 Benefit from reduction of incremental markdown reserves S (23,915) (0.8)% (23,915) (23,915) Total income tax impact % Total impact $ (23,915) (0.9)% (12,134) (3,786) 2.7% 3,786 $ (8,348) (3,786) 2.7% 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 shares outstanding. $ Adjusted $ 889,922 32.3 % (59,071) (12,171) 20.6 % S (46,900) (0.38) 123,099 123,099 * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 third 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. 41#42APPENDIX fiscal 2020 Q3 reconciliation of net (loss) income to adjusted EBITDA (in thousands, except for share data) (unaudited) Net (loss) income Depreciation and amortization Interest expense Tax benefit Reported EBITDA EBITDA as % of net sales Loss on sale Impairment on assets held for sale businesses Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (38,552) $ 87,149 17,179 (8,385) 57,391 $ Three Months Ended November 30, 2019 Excluding - Restructuring and transformation expenses Impairment charges Benefit from reduction of incremental markdown reserves 11,781 Total income tax impact 11,781 $ (23,915) $ 3,786 $ (8,348) (23,915) Total impact (3,786) 3,786 $ (12,134) Adjusted (46,900) 87,149 17,179 (12,171) 45,257 * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 third quarter. In order for investors to be able to more easily compare the Company's performance BED BATH & BEYOND across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation table above and that follow. 1.6 % 42#43APPENDIX building a modern, durable business model BED BATH & BEYOND PURPOSE make it easy to feel at home PRINCIPLES customer inspired omni-always people powered performance driven PILLARS & PROFICIENCIES product price promise place people 8 ELL PERFORMANCE MISSION re-establish our authority and be the preferred omni-channel home destination driven by teams consistently delivering balanced durable growth sales proficiencies margin cash flow TSR 43