Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q2 2016 Earnings Conference Call - Final Transcript
Sep 21, 2016 • 05:00 pm ET
Welcome to Bed Bath & Beyond's Second Quarter Fiscal 2016 Earnings Call. All participants will be in a listen-only mode until the Q&A session of the call. Today's conference call is being recorded. A rebroadcast of the conference call will be available beginning on Wednesday, September 21, 2016, at 7:30 p.m. Eastern Time through 7:30 p.m. Eastern Time on Friday, December 23, 2016. To access the rebroadcast, you may dial 888-843-7419 with the passcode ID of 4332261.
At this time, I would like to turn the conference over to Janet Barth, Vice President, Investor Relations. Please go ahead.
Thank you, Adrianne, and good afternoon, everyone. Joining me on our call today are Steven Temares, Bed Bath & Beyond's Chief Executive Officer and member of the Board of Directors; Gene Castagna, Chief Operating Officer; and Sue Lattmann, Chief Financial Officer and Treasurer.
(Forward-Looking Cautionary Statements)
Our earnings press release dated September 21, 2016 can be found in the Investor Relations section of our website at www.bedbathandbeyond.com.
Here are some highlights from our financial results. Second-quarter net earnings per diluted share were $1.11. Net sales for the quarter were approximately $3 billion, a decrease of 0.2% compared to the prior-year period. Quarterly comparable sales decreased approximately 1.2%. Sales from our customer-facing digital channels grew in excess of 20%, and sales from our stores declined in the low-single digit percentage range.
In addition, our Board of Directors today declared a quarterly dividend of $0.125 per share, to be paid on January 17, 2017 to shareholders of record as of the close of business on December 16, 2016. Fiscal 2016 net earnings per diluted share are expected to be within the range we described in our previous earnings press releases.
I will now turn the call over to Sue, who will review our second-quarter financial results and our fiscal 2016 key modeling assumptions. Steven will then discuss some of the notable developments relating to our strategic initiatives. After our prepared remarks, we will open up the call to questions.
I will now turn the call over to Sue.
Thanks, Janet, and good afternoon, everyone. I'll start with a review of our second-quarter results, which include the activity of One Kings Lane from June 14. Our net sales for the quarter were approximately $3 billion, a decrease of 0.2% from the second quarter of last year, primarily due to a decrease of approximately 1.2% in comp sales, partially offset by an increase of approximately 1% in non-comp sales, including new stores and One Kings Lane.
The decrease in comp sales for the quarter was attributable to a decrease in the number of transactions, partially offset by an increase in the average transaction amount. As a reminder, One Kings Lane is excluded from our comp sales calculations, and will be until after the anniversary of the purchase. Comp sales from our customer-facing digital channels grew in excess of 20% in the second quarter, while comp sales from our stores declined in the low-single digit percentage range.