Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q1 2019 Earnings Conference Call - Final Transcript

Jul 10, 2019 • 05:00 pm ET


Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q1 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript

Robyn D'Elia

retail environment, we are taking a more conservative approach to our outlook for the remainder of the year.

On our last call, we modeled net sales to be between $11.4 billion and $11.7 billion. Considering what we know about the second quarter to-date and our outlook for the back half of this fiscal year, we expect our consolidated net sales to continue to be within this range, but at the lower end driven by declines in store comps that we have been experiencing. Net earnings per diluted share are estimated to fall toward the lower end of the previously provided range of approximately $2.11 to $2.20, excluding the goodwill and other impairments, severance expenses and shareholder activity cost.

On a quarterly basis, we expect to see improvement in our financial performance as the year progresses. Our model to achieve consolidated net sales at the low end of our previously guided range anticipates a gradual sequential improvement in comp sales in store as we progress through the year, benefiting from our efforts to stabilize sales including changes to our marketing program coupled with other sales initiatives underway. Considering this, plus the timing of our transformational initiatives, as well as the usual seasonality of our business, we believe our net earnings per diluted share will be stronger in the back half of fiscal 2019.

Finally, capital expenditures for fiscal 2019 are planned to be approximately $350 million to $375 million. This year's spend includes about $50 million associated with investments in warehouses for e-commerce distribution to personalize product, although we are continuing to evaluate our capital projects for the year.

I will now turn the call back over to Mary.

Mary Winston

Thank you, Robyn. In closing, I want to reiterate my confidence in our associates' ability to connect with and serve our customers. Without question our associates are our greatest asset, but we need to ensure they have the right tools to effectively and successfully compete in today's retail environment. As we move ahead to execute against the near-term priorities that I laid out, our focus will remain on delighting our customers and delivering long-term value for our shareholders.

And with that, we can now open the call for questions.