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

Sep 19, 2017 • 05:00 pm ET


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


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Steven H. Temares

our many dedicated associates who even while contending with storm-related challenges at home, nevertheless made tremendous efforts on behalf of the communities affected, as well as on behalf of our company.

Throughout this time, our main concern has been for the safety of those impacted and to provide assistance to our associates and those most affected. In all, we had approximately 200 stores immediately impacted by these storms, but within a week in both cases almost all of them were back open and operating to serve our customers.

And as of yesterday morning, all of our stores opened on-time with the exception of one store that suffered extensive damage and although one stores have returned to standard hours of operation. This was truly an impressive result and we are very appreciative of our associates' extraordinary efforts to make it happen.

Still, our main concern continues to be for our associates, their families and all of the affected communities. We continue to work with partner charitable organizations and our vendor community to help strengthen the success of the ongoing recovery efforts in the affected areas.

Turning back to the quarter, during our call in June, we discussed our business and our intention to update you on this call as to our full-year outlook based upon gaining greater visibility to the full-year. During our second quarter, we did see a continuation of our early fiscal 2017 trends, namely strong growth in our customer-facing digital channels and increased softness in transactions in our stores.

In addition, our expense structure also absorbed increased costs this quarter associated with the accelerated realignment of our store management structure and the estimated impact of Hurricane Harvey, as well as our planned investments in the business, including in areas such as product fulfillment, customer service, marketing and technology. Overall, our results were softer than we anticipated back in April, when we gave our 2017 modeling assumptions, so we have taken down our model for the rest of the year.

In a few minutes, Sue will provide more details of our quarter and our view of the remainder of the year. As for retail generally, we know the way customer shop continues to change. How they discover product, their expectations and knowledge around pricing and services offered and how they share their thoughts about their shopping experiences are all changing rapidly.

With this understanding, we've been evolving and in some cases transforming many aspects of our business to support our mission to be our customers' first choice for the home and heartfelt life events. I'd like to spend the next few minutes discussing what we're doing to accomplish this, and then I'll turn the call over to Sue.

I will start with operational excellence. One significant undertaking has been the transformation of our information technology group, related business processes and our approach to developing, managing and delivering technology solutions in order to meet the needs of our business.

We have adopted a new model that allows us to better