press release
Bed Bath & Beyond Unveils Comprehensive Strategy To Unlock Potential & Deliver Sustainable Total Shareholder Return
The Company's growth strategy will harness the power of data and insights to engage customers across its core portfolio in an enterprise-wide plan to accelerate its omnichannel transformation. During today's Investor Day meeting, the Company will discuss the key initiatives supporting its strategy, including the following:
Delivering on our Promise to inspire customers to Unlock the Magic in
With a large customer base of 37 million, one in 5 homes in the
Curating a differentiated Product assortment to capture market share.
By completely resetting its assortment,
Offering a clear and compelling Price-value proposition to increase relevance with customers while driving productivity and cost savings.
Leveraging our stores as a strategic asset in an omni-always Place growth strategy that delivers fast and convenient shopping for our digital-first customers.
Modernizing operational Proficiencies to deliver a technology-powered foundation to support sustainable growth, improved margins and greater cash generation.
Unlocking a virtuous cycle to deliver sustainable value creation.
The Company's strategic plan and disciplined investments are expected to deliver an improved customer experience and accelerate sales and margin growth, as well as unlock significant cash flow generation and drive strong and sustainable total shareholder return. During the meeting today,
Outlook
During
Summary of Three-Year Financial Roadmap, Fiscal Years 2021, 2022 and 2023:
Fiscal Year 2021* |
Fiscal Year 2023* |
|
Comp sales |
Stable (Q1 non-comp; Q2-Q4 stable vs strong 2020 base) |
Low- to mid-single digit growth |
Gross margin |
~35% |
38%+ |
EBITDA |
|
|
EBITDA margin |
Mid-single digit |
High-single to low-double digit |
Inventory |
|
3.5x+ inventory turnover |
Gross debt/EBITDA ratio |
<3.5x |
<3.0x |
Capital investments |
|
|
Free cash flow (3-year period) |
|
|
Share repurchases |
Up to |
*Fiscal Years 2021 and 2023 are periods ending
- When: Wednesday, October 28, 2020
- Time:
9:00 a.m. EDT - Webcast: https://2020virtualinvestorday.bedbathandbeyond.com/investor-day-2020. Those interested in participating in the day, are invited to pre-register via this link. A replay of the webcast and the slide presentation will be available after the meeting on the investor relations section of the Company's website at http://bedbathandbeyond.gcs-web.com/investor-relations.
- For additional information, please feel free to contact Investor Relations at IR@bedbath.com.
About the Company
Forward 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, plans with respect to potential asset sales, as well as more generally the status of its future liquidity and financial condition. 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, 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, 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; and the other factors summarized in the Company's reports filed with the
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SOURCE
INVESTOR CONTACT: Janet M. Barth, (908) 613-5820 or IR@bedbath.com; MEDIA CONTACT: Dominic Pendry, (908) 855-4202 or dominic.pendry@bedbath.com