Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q2 2019 Earnings Conference Call - Final Transcript

Oct 02, 2019 • 05:00 pm ET

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Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Janet M. Barth

on January 14, 2020, to shareholders of record at the close of business on December 13, 2019.

I will now turn the call over to Mary.

Executive
Mary Winston

Thank you, Janet, and thank all of you for joining us this afternoon. On today's call, I'd like to provide an update on our actions supporting the Company's strategic near-term priorities in connection with our ongoing business transformation. Following my comments, I will turn the call over to Robyn for a review of our financial and operational highlights of the quarter, as well as our outlook for the year. Then, we'll take your questions.

We feel good about the progress we are making against our four key near-term priorities, including stabilizing sales and driving top line growth, resetting the cost structure, reviewing and optimizing the Company's asset base, including the portfolio of retail banners, and refining our organization structure. This work is being done with the support and guidance of the Business Transformation and Strategy Review Committee of the Board and a highly engaged leadership team. I'm even more confident in the tremendous opportunity in front of us.

Today, I would like to provide an update on the progress we have made against each of our four priorities, as well as what this means for our path forward. Our goal is to ensure our customers see a meaningful difference this critical holiday season while laying foundation for transforming our Company for long-term success.

Last month, in a letter to shareholders, Chairman Patrick Gaston and I shared our enthusiasm for our progress by providing a few specific examples of our near-term actions. I will now provide more details on those actions and several other initiatives we are pursuing.

Our number one priority is stabilizing our top line and optimizing our sales opportunities. A core component of our sales stabilization efforts and our transformation overall is based on new data-driven insights that we're using to identify opportunities for improving our customer value proposition. We are committed to providing our customers with value and improved omnichannel shopping experience and a relevant and compelling assortment of products.

To deliver on this commitment, we are pursuing a multi-pronged approach that includes both near-term and long-term strategies to create a noticeably different shopping experience and a differentiated value proposition for our customers. First, we are already underway with a rapid refresh of almost 160 of our highest volume and most profitable Bed Bath & Beyond stores to improve store traffic trend, drive sales and reset the store experience. We intend to create a more inviting and visually appealing shopping environment through a series of physical improvements to high traffic areas of these stores, such as in entry ways and at checkouts.

These basic improvements, including installation of queue lines at checkout to display exciting impulse items, will be complemented with a rollout of new visual merchandising elements at the front end of the store and upgraded associate and customer-facing technology tools to enhance our associates' ability to drive sales and