Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q2 2017 Earnings Conference Call Transcript

Sep 19, 2017 • 05:00 pm ET

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Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q2 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to Bed Bath & Beyond's Second Quarter Fiscal 2017 Earnings Call. All participants will be in listen-only mode until the Q&A portion of the call. Today's conference call is being recorded.

A rebroadcast of the conference call will be available beginning on Tuesday, September 19, 2017 at 8:00 PM Eastern Time through 8:00 PM Eastern Time on Friday, September 22nd, 2017. To access the rebroadcast, you may dial 1-888-843-7419, the passcode ID of 45587344.

At this time, I'd like to turn the conference call over to Janet Barth, Vice President Investor Relations. Please go ahead.

Executive
Janet Barth

Thank you, Adrian, 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, our Chief Financial Officer and Treasurer.

Before we begin, I'd like to remind you that this conference call may contain forward-looking statements including statements about or references to our internal models and our long-term objectives. All such statements are subject to risks and uncertainties that could cause actual results to differ materially from what we say during the call today. Please refer to our most recent periodic SEC filings for more detail on these risks and uncertainties. The company undertakes no obligation to update or revise any forward-looking statements.

Our earnings press release dated September 19, 2017 can be found in the Investor Relations section of our website at www.bedbathandbeyond.com. Here are some highlights from our second quarter financial results.

Net earnings per diluted share were $0.67, including the unfavorable impact of the restructuring charges related to the accelerated realignment of our store management structure of approximately $0.08, which was announced on August 3, and the estimated cost associated with the impact of Hurricane Harvey of approximately $0.02.

Net sales for the quarter were approximately $2.9 billion, a decrease of approximately 1.7% compared to the prior period. Quarterly comparable sales decreased approximately 2.6%. Comp sales from our customer-facing digital channels continued to have strong growth in excess of 20%, while comp sales from our stores declined in the mid-single-digit percentage range. And our Board of Directors today's declared a quarterly dividend of $0.15 per share to be paid on January 16th, 2018 to shareholders of record as of December 15th, 2017.

I'll now turn the call over to Steve, who will discuss strategic undertakings driving change across our company to improve operational efficiencies and to create future growth. Sue will then discuss our quarterly results in more detail and then give an update on our modeling assumptions for the year. After our prepared remarks, we'll open up the call to questions.

I'll now turn the call over to Steve.

Executive
Steven H. Temares

Thank you, Janet. First off, I would like to express that our thoughts and prayers continue to go to the millions of people, including our associates, their families and our customers who have been impacted by the devastating effects of Hurricanes Harvey and Irma. I'd like to acknowledge