UNION, N.J., Feb. 18, 2020 /PRNewswire/ -- Bed Bath &
Beyond Inc. (Nasdaq: BBBY) today announced its fiscal 2020 capital
allocation strategy, which will include an estimated $1 billion of spend balanced across capital
return to shareholders, debt reduction, and reinvestment in the
Company's core business operations to drive growth.
The Company has a strong cash position, including the expected
net proceeds from the sale of PersonalizationMall.com announced
earlier today, the proceeds from the sale-leaseback transaction
announced in January 2020, and
anticipated cash from operations.
Bed Bath & Beyond's President and CEO Mark Tritton said, "The financial strength of
our business allows us to take the important steps needed to return
capital to our shareholders and reduce our debt, while at the same
time also investing in our customer. This balanced approach
to the use of our capital is expected to enhance shareholder value,
improve the in-store and online experience and position our Company
to achieve our long-term objectives to deliver sustainable
growth."
The Company's fiscal 2020 capital allocation strategy is
expected to include:
- Capital return to shareholders (share repurchases and
dividends) and debt reduction of up to approximately $600 million in the aggregate, with a heavier
weighting towards share repurchases, and all subject to business
and market conditions. The Company's existing $2.5 billion share repurchase program has a
remaining authorized balance of $1.2
billion.
- Capital expenditures in the range of approximately $350 to $400
million, primarily for investments in stores, IT and Digital
projects, and supply chain infrastructure.
Going forward, the Company expects to maintain a strong cash
position, creating future financial flexibility.
The Company is continuing to work on a number of transformative
initiatives as part of its strategic plan for the business, further
supported by this capital allocation strategy. The Company
also expects in the near term to deliver further SG&A savings,
with mid-to-longer term savings in cost of goods primarily related
to the implementation of owned-brand strategies, sourcing
re-negotiations, and further optimization of its supply chain.
Bed Bath & Beyond Inc. to Host Conference Call
Today
Bed Bath & Beyond Inc. will host a conference call with
analysts and investors at 5:30pm ET
today. The call may be accessed by dialing 1-888-771-4371, or
if international, 1-847-585-4405, using conference ID number
49413391. The replay of the call will be available beginning today
at 8:00pm ET through 8:00pm ET on
Thursday, February 20th, 2020, and
can be accessed by dialing 1-888-843-7419, using conference ID
number 49413391. The call and replay can also be accessed via
audio webcast on the investor relations section of the Company's
website at www.bedbathandbeyond.com.
About Bed Bath & Beyond Inc.
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is
an omnichannel retailer that makes it easy for our customers to
feel at home. The Company sells a wide assortment of
domestics merchandise and home furnishings. The Company also
provides a variety of textile products, amenities and other goods
to institutional customers in the hospitality, cruise line,
healthcare and other industries. Additionally, the Company is a
partner in a joint venture which operates retail stores in
Mexico under the name Bed Bath
& Beyond.
Forward-Looking Statements
This press release contains forward-looking statements,
including, but not limited to, the Company's progress and
anticipated progress towards its long-term objectives. Many
of these forward-looking statements can be identified by use of
words such as may, will, expect, anticipate, approximate, estimate,
assume, continue, model, project, plan, goal, and similar words and
phrases, although the absence of those words does not necessarily
mean that statements are not forward-looking. The Company's actual
results and future financial condition may differ materially from
those expressed in any such forward-looking statements as a result
of many factors. Such factors include, without limitation: general
economic conditions including the housing market, a challenging
overall macroeconomic environment and related changes in the
retailing environment; consumer preferences, spending habits and
adoption of new technologies; demographics and other macroeconomic
factors that may impact the level of spending for the types of
merchandise sold by the Company; civil disturbances and terrorist
acts; unusual weather patterns and natural disasters; competition
from existing and potential competitors across all channels;
pricing pressures; liquidity; the ability to achieve anticipated
cost savings, and to not exceed anticipated costs, associated with
organizational changes and investments; the ability to attract and
retain qualified employees in all areas of the organization; the
cost of labor, merchandise and other costs and expenses; potential
supply chain disruption due to trade restrictions, political
instability, labor disturbances, product recalls, financial or
operational instability of suppliers or carriers, and other items;
the ability to find suitable locations at acceptable occupancy
costs and other terms to support the Company's plans for new
stores; the ability to establish and profitably maintain the
appropriate mix of digital and physical presence in the markets it
serves; the ability to assess and implement technologies in support
of the Company's development of its omnichannel capabilities;
uncertainty in financial markets; volatility in the price of the
Company's common stock and its effect, and the effect of other
factors, on the Company's capital allocation strategy; risks
associated with the ability to achieve a successful outcome for its
business concepts and to otherwise achieve its business strategies;
the impact of intangible asset and other impairments; disruptions
to the Company's information technology systems including but not
limited to security breaches of systems protecting consumer and
employee information or other types of cybercrimes or cybersecurity
attacks; reputational risk arising from challenges to the Company's
or a third party product or service supplier's compliance with
various laws, regulations or standards, including those related to
labor, health, safety, privacy or the environment; reputational
risk arising from third-party merchandise or service vendor
performance in direct home delivery or assembly of product for
customers; changes to statutory, regulatory and legal requirements,
including without limitation proposed changes affecting
international trade; changes to, or new, tax laws or interpretation
of existing tax laws; new, or developments in existing, litigation,
claims or assessments; changes to, or new, accounting standards;
and foreign currency exchange rate fluctuations. The Company does
not undertake any obligation to update its forward-looking
statements.
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SOURCE Bed Bath & Beyond Inc.