Bed Bath and Beyond 1Q15 Earnings Call Notes

No doubt that digital is transforming retail

“There is no doubt that digital technology is transforming retail and the way customers shop. For example, customers may now start their shopping experience with us online or through a mobile device to research an item, read customer reviews or compare price. Then they may go on to visit a store and interact with one of our associates before placing an order online or purchasing the item in the store. The evolution of omnichannel retailing has created a more seamless and personalized shopping experience for customers.”

Working on more flexible fulfillment options

“To further support our mission to just take care of our customers, we are creating more flexible fulfillment options that will allow us to deliver orders more quickly and cost effectively. During the first quarter, we opened our newest Las Vegas facility and we are assessing additional sites throughout the country to gain even greater distribution efficiencies. As you know, we already have the capability to ship for most of our stores.”

Physical stores remain integral to our success

“As the digital world and physical stores converge, the physical stores remain integral to our success. Integrated properly, we have a unique opportunity to engage with our customers in new ways and develop deeper customer relationships. In addition to our merchandising efforts, we want to give our customers more reason to spend time in our stores. We want to encourage product discovery, create an experiential shopping environment and enhance the services we offer.”

Expecting flat to slightly higher earnings in 2015

“Based on these and other planning assumptions, we are modeling net earnings per diluted share to be in the range of $1.18 to $1.23 in the second quarter as compared to $1.17 in 2014. For the full year, we are continuing to model net earnings per diluted share to be between relatively flat and a mid-single digit percentage increase as compared to 2014.”