Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q4 2018 Earnings Conference Call Transcript

Apr 10, 2019 • 05:00 pm ET

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Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the Bed Bath & Beyond's Fiscal 2018 Fourth Quarter and Year-End 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, April 10, 2019, at 8:00 PM Eastern Time to 8:00 PM Eastern Time on Friday April 12, 2019. To access the rebroadcast , you may dial (888) 843-7419 with the passcode ID of 48430411.

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

Executive
Janet Barth

Thank you, Adrienne, and good afternoon, everyone. Before we begin, I want to remind you that our fiscal 2018 fourth 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 introductions.

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. Our adjusted fiscal fourth quarter and full year 2018 net earnings per diluted share of $1.20 and $2.05, respectively, were both slightly higher than our model. As we mentioned during our call last quarter, we had to review our goodwill and other intangible assets during the fiscal fourth quarter as required by the accounting rules to determine if the carrying value of these assets needs to be adjusted. Due in large part to the market cap of the company, we have adjusted the carrying value of these assets, which generated a pretax non-cash impairment expense. Please refer to the reconciliation table at the end of our press release for further details.

Our net sales in the quarter declined approximately 11% primarily due to having one less week in the quarter and a shift to the post-Thanksgiving holiday sales week out of our fourth quarter. Our comp sales, which compares the same year-over-year calendar weeks, declined approximately 1.4% in the fourth quarter. And we continue to manage the business with a bias towards driving profitability improvement over near-term sales growth.

Our ongoing focus on inventory optimization strategies resulted in a nearly 5% reduction in our retail inventories at cost. We