$BBBY stated that the coupon expense for 1Q17 resulted from an increase in redemptions, partially offset by a decrease in the average coupon amount.

$BBBY said the investments made over the last few years were necessary. From a profits perspective, as the world evolves, these investments have not produced growing earnings but they are sustaining the company’s relative position in the landscape. $BBBY added that without these investments, it would not exist today.

$BBBY saw strong growth in its customer-facing-digital channels in 1Q17. However, the company experienced increased softness in transactions in stores, as well as higher net-direct-to-customer shipping expense, coupon expense, and advertising costs. It remains to be seen whether these challenges were more pronounced in, or unique to, 1Q17.

In 1Q17, $BBBY’s comparable sales fell by approx. 2%. This reflected decrease in number of transactions in stores, partially offset by an increase in average transaction amount. Comparable sales from customer-facing digital channels had strong growth in excess of 20%, while comp sales from stores declined in the mid-single-digit percentage range.

$BBBY said for FY17, more than half of its capital spend would be allocated towards technology in terms of growing omnichannel capabilities, including its website and mobile apps. It will also include the customer service center that $BBBY is opening in Florida and the technology associated with it.

$BBBY has been evolving its store format and continues to evolve it. In digital, the company has many benefits such as reduced advertising and customer convenience. $BBBY believes it is doing well in digital as it is adding to the assortment and improving search, content and speed.

$BBBY is modeling a low to mid single-digit percentage increase in consolidated net sales for FY17, including the 53rd week. The company also estimates a relatively flat to slightly positive increase in comparable sales, including growth in customer base and digital channels. $BBBY plans to open 30 new stores and close about 15-20 stores in FY17.

$BBBY ended FY16 with approx. $578MM in cash, cash equivalents and investment securities. Capex was approx. $374MM in FY16. During 4Q16, the company opened nine new stores and closed four stores. For FY16, $BBBY opened 29 stores and closed 13 stores.

$BBBY's comparable sales in 4Q16 increased by about 0.4%. Comparable sales from customer-facing digital channels grew in excess of 20% while comparable sales from stores declined in the low single-digit percentage range. Gross margin was approx. 38% in 4Q16.

$BBBY said the Tmall accretion can be quantified by saying that it's slightly accretive overall from an EPS perspective. Overall, the company added that Tmall is not material but slightly accretive to the overall business.

$BBBY opened 10 new stores during 3Q16, including five Bed Bath & Beyond stores. In the quarter, the company also closed eight Bed Bath & Beyond stores. For FY16, the company continues to model GM deleverage, including increases in coupon expense and net direct to customer shipping expense. $BBBY expects FY16 GM deleverage to be flat with FY15.

$BBBY stated that sales from the company's stores declined in the low single digit percentage range in 3Q16. Going forward, the company expects a full year comp sales decline of about 50 BP, with net sales increasing about 1%.