Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q2 2020 Earnings Conference Call - Final Transcript

Oct 01, 2020 • 08:00 am ET

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Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the Bed, Bath & Beyond's Fiscal 2020 Second Quarter Earnings Call. [Operator Instructions]

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

Executive
Janet M. Barth

Thank you, and good morning, everyone. Welcome to our fiscal 2020 second quarter earnings call. On the call with us today is President and CEO, Mark Tritton; Chief Financial Officer and Treasurer, Gustavo Arnal; Chief Operating Officer and President of buybuy BABY, John Hartmann; and Chief Brand Officer and President of Decorist, Cindy Davis.

Before we begin, let me remind you that our fiscal 2020 second quarter earnings release and slide presentation can be found on the Investor Relations section of our website at www.bedbathandbeyond.com, and as exhibits to the Form 8-K we just filed ahead of this call. This conference call and the slides we refer to, may contain forward-looking statements, including statements about or references to our outlook regarding the company's performance, 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, including the Risk Factors section in our annual report on Form 10-K. The company undertakes no obligation to update or revise any forward-looking statements.

Additionally, the information we will discuss today contains certain financial measures that exclude amounts or are subject to adjustments that have the effect of excluding amounts that are included in the most directly comparable measure prepared in accordance with generally accepted accounting principles. For a reconciliation to the most comparable measures presented in accordance with GAAP, please refer to the table in our earnings release available on our website and included as an exhibit to our Form 8-K filed today.

It is now my pleasure to turn the call over to Mark.

Executive
Mark J. Tritton

Thank you, Janet, and good morning, everyone. We are pleased to share our results with you today. We believe this was a pivotal quarter for our organization, with strong sales and profit growth as well as enhanced financial strength through high cash flow generation within the quarter of $750 million coupled with effective expense and debt management.

We achieved strong top-line growth and delivered second quarter comparable sales of 6%, the first positive quarterly comp since the fourth quarter of 2016. Additionally, we delivered improvement in gross margin even with the increased strength of our digital business. Our strong results flow through to the bottom line with adjusted EPS of $0.50, the strongest adjusted quarterly earnings reported in over two years. While we will detail our overall second quarter performance today, we are most excited to share how this quarter served in a wrong way to our three year plan that will share at our Virtual Investor Day on October 28.

During our call today, Gustavo Arnal, Chief Financial Officer and Treasurer will review