Bed Bath & Beyond Inc (BBBY) 2023 Q3 法說會逐字稿

Good morning, and welcome to the Third Quarter 2022 Bed Bath & Beyond, Inc. Earnings Conference Call. My name is Cheryl, and I will be your operator for today's call. (Operator Instructions) Please note that this conference call is being recorded.

早上好，歡迎來到 Bed Bath & Beyond, Inc. 2022 年第三季度收益電話會議。我叫謝麗爾，我將擔任今天電話會議的接線員。 （操作員說明）請注意，此電話會議正在錄製中。

I will now turn the call over to Susie Kim, Head of Investor Relations and Treasury. You may begin.

我現在將把電話轉給投資者關係和財政部主管 Susie Kim。你可以開始了。

Thank you, and good morning, everyone. Welcome to our fiscal 2022 third quarter earnings call. On today's call, you will be hearing from Sue Gove, President and Chief Executive Officer.

謝謝大家，早上好。歡迎來到我們的 2022 財年第三季度財報電話會議。在今天的電話會議上，您將聽到總裁兼首席執行官 Sue Gove 的講話。

Before we begin, I'd like to remind you that our fiscal 2022 third quarter earnings release can be found on the Investor Relations section of our website at bedbathandbeyond.com and as exhibits to our related Form 8-K.

在我們開始之前，我想提醒您，我們的 2022 財年第三季度收益發布可以在我們網站 bedbathandbeyond.com 的投資者關係部分找到，並作為我們相關 8-K 表格的附件。

This conference call and the press release 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.

我們提到的本次電話會議和新聞稿可能包含前瞻性陳述，包括關於我們對公司業績、我們的內部模型和我們的長期目標的展望的陳述或參考。所有此類陳述都受到風險和不確定性的影響，這些風險和不確定性可能導致實際結果與我們今天在電話會議上所說的大相徑庭。

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 and our quarterly reports on Form 10-Q. The company undertakes no obligation to update or revise any forward-looking statements.

有關這些風險和不確定性的更多詳細信息，請參閱我們最近定期向美國證券交易委員會提交的文件，包括我們 10-K 表格年度報告和 10-Q 表格季度報告中的風險因素部分。公司不承擔更新或修改任何前瞻性陳述的義務。

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 those 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.

此外，我們今天將討論的信息包含某些財務措施，這些措施排除了根據公認會計原則編制的最直接可比措施中包含的金額或進行了調整，這些調整影響排除了包含在最直接可比措施中的金額。如需與根據 GAAP 提出的那些可比措施的對賬，請參閱我們網站上提供的收益發布中的表格，該表格作為我們今天提交的 8-K 表格的附件。

Lastly, in light of the ongoing review of strategic alternatives that we disclosed last week, we will limit today's call to our prepared remarks. Of course, as always, please feel free to reach out to me with any questions.

最後，鑑於我們上週披露的對戰略備選方案的持續審查，我們將把今天的電話會議限制在我們準備好的評論中。當然，一如既往，如有任何問題，請隨時與我聯繫。

I will now turn the call over to Sue.

我現在將把電話轉給蘇。

Thanks, Susie, and good morning, everyone. In light of our preannouncement last week, we recognized the importance and focus on today's call for those who have been with us on our journey to enact significant change in our business over the past few months, especially, our customers, our associates and our business partners. While we reported our fiscal third quarter financial results in a press release earlier today, my remarks will be focused on the strategic pillars of our turnaround and the progress we are making towards our vision for the company.

謝謝，Susie，大家早上好。鑑於我們上週的預先公告，我們認識到今天的呼籲對那些在過去幾個月中與我們一起對我們的業務進行重大變革的人的重要性和關注，特別是我們的客戶、我們的員工和我們的業務夥伴。雖然我們今天早些時候在新聞稿中報告了第三財季的財務業績，但我的發言將集中在我們扭虧為盈的戰略支柱以及我們在實現公司願景方面取得的進展。

For decades, Bed Bath & Beyond has set the pace across the home goods sector, and we have commanded our position in retail through many different economic cycles and serving a continuously evolving customer. We believe our concrete advantages in defining categories, offering broad and curated selection and delivering great service for customers are compelling reasons why we will continue to command a formidable presence in the Home and Baby categories in the future.

幾十年來，Bed Bath & Beyond 引領了整個家居用品行業，我們在許多不同的經濟周期中佔據了零售業的地位，並為不斷變化的客戶提供服務。我們相信，我們在定義類別、提供廣泛和精選的選擇以及為客戶提供優質服務方面的具體優勢是我們未來將繼續在家居和嬰兒類別中佔據強大地位的令人信服的理由。

We have the talent and team to accomplish our goals. Our business was built around our loyal customers. Listening and responding to their preferences was at the center. Veering away from that path has led to our recent financial performance. We have taken aggressive action to change the elements of our business that are not aligned to what our customer wants. We are rebuilding our assortment to serve our customers' needs by leading with national brands and reducing our owned brands merchandise at the Bed Bath banner. We are accomplishing these goals successfully as owned brand inventory penetration has declined 10 percentage points versus peak levels during the first half of the fiscal year.

我們擁有實現目標的人才和團隊。我們的業務是圍繞我們忠實的客戶建立的。傾聽和回應他們的偏好是核心。偏離這條道路導致了我們最近的財務業績。我們已採取積極行動，改變與客戶需求不符的業務要素。我們正在重建我們的產品系列，通過以民族品牌為主導並減少 Bed Bath 橫幅上的自有品牌商品來滿足客戶的需求。我們正在成功實現這些目標，因為自有品牌庫存滲透率與本財年上半年的峰值水平相比下降了 10 個百分點。

Furthermore, our closing store and no go-forward inventory has reduced from almost $500 million at cost on hand and on order to just over $130 million at cost in the last 6 months. We've achieved these results by purposefully utilizing our closing stores as targeted vehicles for clearance, as many of you have seen. These locations are signs of progress and effective execution. We are taking intentional action across our chain by allocating resources to achieve our strategic goals on a store-by-store basis.

此外，在過去 6 個月中，我們關閉的商店和沒有前進的庫存已從手頭和訂單成本的近 5 億美元減少到略高於 1.3 億美元的成本。正如你們中的許多人所見，我們通過有目的地利用我們關閉的商店作為清關的目標工具來取得這些成果。這些位置是進步和有效執行的標誌。我們正在通過分配資源在整個連鎖店採取有意識的行動，以在逐家商店的基礎上實現我們的戰略目標。

Despite this progress on owned brands, rebuilding our national brand presence will take time. Following some of the micro and macroeconomic challenges, we, and the sector faced, at the beginning of the quarter, we experienced an acceleration in vendor payment terms and credit line constraints. This led to lower receipts and, therefore, lower in-stock levels, in the 70% range, which hampered our sales further in an already competitive environment. We have worked diligently with our supplier partners and our payables remain at healthy levels, as demonstrated by the continued sequential decline in accounts payable as well as accrued expenses and other current liabilities on our balance sheet.

儘管在自有品牌方面取得了這些進展，但重建我們的民族品牌形象仍需要時間。在本季度初，我們和該行業面臨一些微觀和宏觀經濟挑戰之後，我們經歷了供應商付款條件和信貸額度限制的加速。這導致收貨量減少，因此庫存水平降低，在 70% 的範圍內，這進一步阻礙了我們在競爭激烈的環境中的銷售。我們與供應商合作夥伴努力合作，我們的應付賬款保持在健康水平，這從我們資產負債表上的應付賬款以及應計費用和其他流動負債的持續連續下降中可以看出。

We have already leveraged the liquidity gain from the holiday season to pursue more inventory and higher in-stock levels with support from our key vendors. Additional efforts are also underway to further increase stock levels.

在主要供應商的支持下，我們已經利用假期帶來的流動性收益來尋求更多的庫存和更高的庫存水平。還在努力進一步提高庫存水平。

We've seen significant sales trend improvements on both the sequential and year-over-year basis where in-stock levels have improved to a more normalized range, above 80%, particularly related to our Bed Bath circular items and at our buybuy BABY business. This underscores our ability to achieve results when we have the supply. Our customers are still coming to us for their needs.

我們已經看到銷售趨勢在連續和同比基礎上都有顯著改善，庫存水平提高到更正常的範圍，超過 80%，特別是與我們的床浴循環項目和我們的 buybuy BABY 業務相關.這強調了我們在有供應時取得成果的能力。我們的客戶仍然來找我們滿足他們的需求。

In addition to our merchandise strategy, strengthening our operations and financial performance to better serve our customers continues to drive our decision-making. As part of our turnaround, we are resetting foundational elements to create a stronger and more nimble infrastructure that aligns closely with customer demand and preference.

除了我們的商品戰略，加強我們的運營和財務業績以更好地為我們的客戶服務繼續推動我們的決策。作為我們轉型的一部分，我們正在重新設置基礎元素，以創建一個更強大、更靈活的基礎架構，與客戶的需求和偏好密切相關。

We are delivering on our aggressive second half commitment of $250 million in SG&A optimization, or $500 million annualized, and the 150 store rationalization target that we previously outlined. To more accurately align resources with our focus areas and future, we are enacting an additional $80 million to $100 million in cost reductions across corporate, including expense and headcount.

我們正在兌現下半年 2.5 億美元的 SG&A 優化承諾，即年化 5 億美元，以及我們之前概述的 150 家門店合理化目標。為了更準確地使資源與我們的重點領域和未來保持一致，我們將在整個公司範圍內額外削減 8000 萬至 1 億美元的成本，包括費用和員工人數。

Our organization is more streamlined to enable our priorities across Bed Bath; buybuy BABY; and Harmon, and we have adopted an infrastructure that reflects our current business priorities.

我們的組織更加精簡，以實現我們在 Bed Bath 中的優先事項；買買寶貝；和 Harmon，我們採用了反映我們當前業務優先級的基礎架構。

We also recognize and embrace that our customer shops differently today. They visit stores less frequently and have higher expectations when they do visit around service, engagement and assortment. They want an omni experience that we are committed to deliver. Ease of shopping is critical, and we are committed to delivering such services as BOPIS and same-day shipping. At the same time, we are listening to our customers, and we are swiftly enacting improvements to their experience.

我們也承認並接受我們的客戶今天的購物方式有所不同。他們光顧商店的頻率較低，而當他們確實圍繞服務、參與度和分類進行光顧時，他們會有更高的期望。他們想要我們致力於提供的全方位體驗。購物的便利性至關重要，我們致力於提供 BOPIS 和當日送達等服務。與此同時，我們正在傾聽客戶的意見，並迅速改進他們的體驗。

The preliminary results of our supply chain network optimization indicate the ability to improve our cost to serve as well as our time to deliver for our customers while driving an additional $80 million to $100 million in efficiency.

我們供應鍊網絡優化的初步結果表明，我們能夠降低服務成本並縮短為客戶交付的時間，同時將效率提高 8000 萬至 1 億美元。

We are implementing our plan expeditiously while managing our financial position in a changing landscape. As we shared last week, we continue to work with advisers as we consider all strategic alternatives to accomplish our near- and long-term goals.

我們正在迅速實施我們的計劃，同時在不斷變化的環境中管理我們的財務狀況。正如我們上週分享的那樣，在我們考慮所有戰略選擇以實現我們的近期和長期目標時，我們將繼續與顧問合作。

Internally and externally, we have a team with proven experience, helping companies successfully navigate difficult situations and become stronger. Multiple paths are being explored, and we are determining our next steps, thoroughly, and in a timely manner.

在內部和外部，我們擁有一支經驗豐富的團隊，幫助公司成功渡過難關並變得更強大。正在探索多條路徑，我們正在徹底、及時地確定我們的下一步。

We are committed to updating all stakeholders of our plans as they develop and finalize, particularly for our employees and partners, who are the essential catalysts of our business and the cornerstone of our future.

我們致力於在計劃制定和最終確定時更新所有利益相關者，特別是我們的員工和合作夥伴，他們是我們業務的重要催化劑和我們未來的基石。

Finally, we want our customers to know that we hear them and we are charging ahead every day to meet their needs. Our entire organization is laser-focused on maximizing the value of our company by reconnecting with our customers and positioning Bed Bath & Beyond, buybuy BABY and Harmon for long-term success.

最後，我們希望我們的客戶知道我們聽到了他們的聲音，並且我們每天都在努力滿足他們的需求。我們整個組織都專注於通過與客戶重新建立聯繫並定位 Bed Bath & Beyond、buybuy BABY 和 Harmon 來實現公司價值的最大化，以取得長期成功。

Thank you for joining us today.

感謝您今天加入我們。

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.

謝謝你們，女士們，先生們。今天的會議到此結束。感謝您的參與。您現在可以斷開連接。