Bed Bath & Beyond Results Presentation Deck
Q4 2019 Financial Results Summary
▪ On a GAAP basis, a net loss per diluted share of ($0.53) vs. a net loss per diluted share of ($1.92) in the
prior year period
Reported net loss includes an unfavorable impact of $0.91 per diluted share for special items
including: ~$41 million in severance costs; non-cash charge of ~$35 million for impairment of
certain store-level assets; non-cash charge of ~$33 million for impairment of certain tradenames
and other assets; and $33 million expense related to loss on sale-leaseback transaction, including
transaction fees
•
On an adjusted basis, net earnings per diluted share of $0.38
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▪ Net sales of $3.1B, a decrease of 6.1%; Comp sales decline of 5.6%, including ~10% decline
in stores, and ~16% increase in digital channels
Sales significantly impacted by calendar shift of Cyber Monday holiday into FY 2019 Q4
(not included in FY 2018 Q4)
Adjusting for calendar shift (exclude Cyber Monday week from both periods), Comp sales decline
11%, with 13.6% decline in store and ~1.1% growth in digital
•
▪ Gross Margin of 32.6% decline 210 bps vs. FY 2018 Q4, primarily due to unfavorable impact on
merchandise margin from promotional activity and markdowns, and an increase in net direct-to-customer
shipping expense due to higher penetration of digital sales within the total mix of quarterly sales
▪ Adjusted SG&A expense (as % of sales) of 30.7% increase ~250 bps, in order of magnitude, was primarily
due to consulting expense (~100 bps), increase in advertising expense, including digital marketing, and to
a lesser extent, effect of fixed costs on a lower sales base
Adjusted tax rate of (3.3%), including ~$8.3 million of net after tax benefits due to distinct events
occurring during the quarter
Cash and investments balance of $1.4B at the end of FY 2019 Q4
▪ Adjusted Retail Inventories of $2.1B (at cost) at the end of FY 2019 Q4, a reduction of ~16% or
over $400 million (at cost) vs FY 2018 Q4
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