Bed Bath & Beyond Results Presentation Deck
Q3 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.
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