Bed Bath and Beyond 1Q17 Earnings Call Notes

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Steven Temares – CEO

*We’ve had to make a lot of investments that have just maintained market share

“The general answer is that investments we’ve made been essential for us. And to the degree that they have been good investment they have been necessary and good investment. And if you look at where we would be without these investments, you are looking at the people that we were consider best in class with 7, 8, 9 years ago across all the big boxes, many of them don’t exist today. So it’s unfortunately from a bottom line perspective is that as the world evolves these investments aren’t producing growing earnings but they are sustaining our relative position in the landscape. So we remain when we look across now 46 different competitors, one of the most successful retailers out there with some of the best return. But we are not satisfied with that but these investments need to be made. If we didn’t make these things, we won’t exist today. ”

Susan Lattmann

We are keenly aware of the free shipping threshold

So I’ll take the first part of that. So regarding the free shipping threshold, we did anniversary for Bed Bath & Beyond the $29 free shipping threshold. For this particular quarter the entire quarter was at $29, where compared to last year about half of the quarter was at $49. In terms of competition, obviously that’s something that we are keenly aware and we look to see what’s the free shipping threshold is for others. It’s considered part of a value prop and we realized that the customer look to that when making their purchasing decision. But for now we feel the $29 for Bed Bath is a good spot to be in it, a sweet spot and that’s where we are for now.