Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q2 2018 Earnings Conference Call - Preliminary Transcript

Sep 26, 2018 • 05:00 pm ET

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Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q2 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Welcome to the Bed Bath & Beyond's Fiscal 2018 Second Quarter Earnings Call. All participants will be in a 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 Wednesday, September 26, 2018 at 8 pm Eastern Time through 8 pm Eastern Time on Friday, September 28, 2018. To access the rebroadcast, you may dial 888-843-7419, with the passcode ID of 47547438.

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

Executive
Janet Barth

Thank you, Adrianne, and good afternoon, everyone. Before we begin, I want to remind you that our fiscal 2018 second quarter earnings release and slide presentation can be found in the Investor Relations section of our website at www.bedbathandbeyond.com and as exhibits to a Form 8-K we filed just ahead of this call. Feel free to access these materials now, while I continue with our introduction.

Joining me on our call today are Steven Temares, Bed Bath & Beyond's Chief Executive Officer and Member of the Board of Directors; Robyn D'Elia, our Chief Financial Officer and Treasurer; Gene Castagna, President and Chief Operating Officer; and Sue Lattmann, our Chief Administrative Officer.

Let me remind you that this conference call and the slides we refer to 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.

Here are some highlights from our second quarter results which reflect our ongoing transformation and our continued focus on being trusted by our customers as the expert for the home and heartfelt life events.

Our second quarter net sales were flat to the prior year and comparable sales declined approximately 0.6%, including strong sales from our customer-facing digital channels and a mid single digit percentage decline in sales from our stores. Net earnings per diluted share were $0.36, in line with our model.

We continued to grow our cash and investments and ended the quarter with the balance of approximately $1.1 billion, about double the amount of cash and investments we had at the end of the fiscal 2017 second quarter. We have made adjustments to our fiscal 2018 modeling assumptions to reflect a number of factors. These include ongoing learning for many of our initiatives as we transform our Company, as well as a bias to prioritize long-term profitability improvement over near-term sales growth, the continuation of trends we've been experiencing, the impacts from growth and enrollment in our BEYOND+ and College Savings Pass programs, the gains from a recent building sale, fiscal back half management consulting fees, the estimated impact from both Hurricane Florence