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Wednesday, July 8, 2020

-=Bed Bath & Beyond (BBBY) reported earnings on Wed 8 July 20 (a/h)

Bed Bath & Beyond misses by $0.65, misses on revs, not providing comp data or guidance; plans to close approx 200 stores over next two years
  • Reports Q1 (May) loss of $(1.96) per share, excluding non-recurring items, $0.65 worse than the S&P Capital IQ Consensus of ($1.31); revenues fell 49.2% year/year to $1.31 bln vs the $1.39 bln S&P Capital IQ Consensus.
    • Co not reporting same store comps due to temporary store closures.
    • Net sales from digital channels grew 82%, including sales growth in excess of 100% during April and May 2020, while net sales from stores, of which 90% of the Company's total fleet were closed during the majority of the quarter, declined approximately 77%.
    • Sales from digital channels represented nearly two-thirds of total sales.
    • "With nearly all stores now open, we are delighted to welcome back our customers and drive an enhanced omni-always shopping experience. We are encouraged by early customer response, including continued strong demand, in excess of 80%, across our digital channels during the month of June, bolstered by the expansion of our Buy-Online-Pick-Up-In-Store (BOPIS) and Curbside Pickup services."
  • Outlook: Co is not providing guidance due to the continued uncertainty related to the impact of the COVID-19 pandemic. Co believes it has a strong financial position to manage through these uncertain times.
  • Restructuring Update:
    • Co plans to close approximately 200 mostly Bed Bath & Beyond stores over the next two years and focus on other SG&A expense reductions.
    • Co expects the aggregate benefit from these actions will generate future annualized savings of between $250-350 mln.

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