Bed Bath & Beyond Inc. advances three-year, $ 1 billion share buyback program in fiscal 2021

UNION, NJ, November 2, 2021 / PRNewswire / – Bed Bath & Beyond Inc. (NASDAQ: BBBY) today announced that it plans to complete its $ 1 billion three-year share buyback plan by the end of fiscal year 2021, two years in advance.

To date, the Company has completed $ 600 million share repurchases since the end of fiscal 2020. The Company now plans to repurchase the remaining $ 400 million of the program by the end of fiscal 2021, more specifically in the third and fourth quarters.

Marc Tritton, Chairman and CEO of Bed Bath & Beyond commented: “We continue to execute our bold transformation and execute successful strategies that will strengthen our value creation in the short and long term. Today’s announcement further underscores our continued confidence in our recovery and our ability to simultaneously generate positive cash flow, maintain a strong balance sheet and invest in our long-term growth, while returning meaningful capital to shareholders.

Mr. Tritton continued, “As we continue to navigate into the third quarter, the corrective and surgical pricing actions we have implemented are leading to a trend towards the gross margin rates expected for the period. Sales to date have remained in line with the September trends that we shared during our earnings call several weeks ago. Our objective remains to generate sales growth during the very important month of November, which represents a disproportionately greater impact on our quarterly sales. We are getting ready for the peak holiday season and are particularly excited about the new future sales channels we announced today, which are our strategic collaboration with Kroger and our own digital marketplace. “

During the first six months of the current financial year, the Company executed approximately $ 225 million in repurchase with $ 100 million remaining under his $ 325 million plan for fiscal year 2021. With today’s announcement, the total expected share buyback amount for fiscal year 2021 has now increased to approximately $ 625 million, almost doubling the initial share buyback plan of $ 325 million for the current fiscal year.


FY20

FY21

TOTAL PROGRAM



Q1-Q2

Q3-Q4

Total

Nowadays

Remaining

Total

Share buybacks

$ 375 million

$ 225 million

$ 400 million

$ 625 million

$ 600 million

$ 400 million

$ 1 billion

This accelerated and revised share buyback plan is in line with the Company’s capital allocation principles of investing for growth and transformation, ensuring financial resilience and returning liquidity to shareholders. From August 28, 2021, total liquidity was around $ 2.0 billion, including the revolving credit facility based on the Company’s assets.

The method, timing and actual number of shares redeemed will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities. The Company does not expect today’s announcement to have a significant impact on fiscal 2021.

About Bed Bath & Beyond

Bed Bath & Beyond Inc. and its 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 merchandise in the home, baby, beauty and wellness markets. In addition, the Company is a partner in a joint venture that operates retail stores in Mexico under the name of Bed Bath & Beyond.

The Company operates websites at bedbathandbeyond.com, bedbathandbeyond.ca, buybuybaby.com, buybuybaby.ca, harmondiscount.com, facevalues.com and decorist.com.

Forward-looking statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including, but not limited to, the business plans and future operations of the Company, as well as progress and anticipated progress towards its long-term goals. . Many of these forward-looking statements can be identified by the use of words such as can, will, expect, anticipate, approximate, estimate, assume, continue, model, project, plan, objective, preliminary and similar words and phrases , although the absence of these words does not necessarily mean that the statements are not forward-looking. The actual results and future financial condition of the Company may differ materially from those expressed in such forward-looking statements due to many factors. These factors include, but are not limited to: general economic conditions, including the housing market, a challenging overall macroeconomic environment and related changes in the retail environment; the risks associated with the COVID-19 pandemic and government responses to it, including its impacts on all of the Company’s activities on demand and operations, as well as on the operations of the Company’s suppliers and other business partners, and the effectiveness of the measures taken by the Company in response to those risks; consumer preferences, consumption habits and the adoption of new technologies; demographics and other macroeconomic factors that may affect the level of expenses for the types of commodities sold by the Company; civil unrest and terrorist acts; unusual weather conditions and natural disasters; competition from existing and potential competitors on all channels; price pressures; liquidity; the ability to achieve anticipated cost savings, and not to exceed anticipated costs, associated with organizational changes and investments, including the Company’s strategic restructuring program and store network optimization strategies; the ability to attract and retain qualified employees in all areas of the organization; the cost of labor, goods, logistics costs and other costs and expenses; potential supply chain disruption due to trade or other restrictions, and other factors such as natural disasters, pandemics, including the COVID-19 pandemic, political instability, labor disruptions, 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 cost-effectively establish and maintain the appropriate mix of digital and physical presence in the markets it serves; the ability to assess and implement technologies to support the Company’s development of its omnichannel capabilities; the ability to effectively and timely adjust the Company’s plans in the face of the rapidly changing business and economic environment, including in response to the COVID-19 pandemic; uncertainty in financial markets; the volatility of the price of the Company’s common shares and its effect, and the effect of other factors, including the COVID-19 pandemic, on the Company’s capital allocation strategy; risks associated with the ability to achieve a positive outcome for the Company’s business concepts and otherwise to achieve its business strategies; the impact of intangible assets and other impairments; disruptions to the Company’s computer systems, including, but not limited to, security breaches of systems protecting consumer and employee information or other types of cybercrime or cybersecurity attacks; reputational risk resulting from challenges to the compliance of the Company or a supplier of third-party products or services with various laws, regulations or standards, including those related to work, health, safety, life private or the environment; the risk of damage to reputation arising from the performance of a supplier of third-party services or goods in the direct-to-door delivery or assembly of products for customers; changes in legal, regulatory and legal requirements, including, without limitation, proposed changes affecting international trade; changes or new tax laws or the interpretation of existing tax laws; new disputes, complaints or evaluations in progress or developments in progress; changes or new accounting standards; and fluctuations in exchange rates. Except as required by law, the Company does not undertake any obligation to update its forward-looking statements.

SOURCE Lit Bain & Beyond Inc.

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