Bed Bath & Beyond Inc. (NASDAQ: BBBY) today reported financial results for the first quarter of fiscal 2021 ended May 29, 2021.
Mark Tritton, Bed Bath & Beyond’s President and CEO said, “We have started the year in a position of strength and are clearly on track to accomplish our goals. 2021 marks the first year of our three-year transformation following the groundwork we laid in 2020 – a year of historic and necessary change for this organization against the backdrop of unprecedented challenges due to COVID-19. For the first quarter, we delivered our fourth consecutive quarter of comparable sales growth with gross margin expansion exceeding our expectations. These results demonstrate continued momentum with our strategies as we progress towards the goals we outlined at year-end and at our Investor Day.”
- Core Sales growth of +73%
- Comparable Sales growth of +86% versus Q1 2020
- Net Sales of $1,954M
- Core Sales Growth of 73%; Comparable Sales Growth of 86%
- GAAP Gross Margin of 32.4%; Adjusted Gross Margin of 34.9%
- Adjusted EBITDA of $86 Million
- Establishes guidance outlook for 2021 second quarter
- Raises Full Fiscal Year 2021 Outlook
Fiscal 2021 Second Quarter Outlook
The Company expects fiscal 2021 second quarter Net Sales of between $2.04 billion to $2.08 billion, which only reflects sales from the Company’s Core1 businesses. Net Sales also includes planned sales reductions from the Company’s store fleet optimization program of approximately 9% to 10%. On a Comparable Sales basis, the Company expects to achieve growth in the low-single digit range compared to the prior year period.
Fiscal Year 2021 Outlook
Based on strong performance in the fiscal first quarter and current expectations for the fiscal second quarter, the Company is raising its fiscal year 2021 guidance outlook.
The Company now expects higher fiscal year 2021 Net Sales of $8.2 billion to $8.4 billion from $8.0 billion to $8.2 billion. The Company is raising comparable sales expectations for the second through fourth quarters of fiscal 2021 to the Low-Single Digit growth range versus its previously communicated guidance outlook for Flat comparable sales growth. This compares to the Company’s robust sales performance during the second through fourth quarters of fiscal 2020.
Tritton added, “We have made meaningful progress against our transformational pillars during this early stage of our multi-year plan. We have confidently achieved each milestone along our transformation thus far and I would like to thank our team of incredible associates for their work in defining and driving these results. We are a stronger, more agile company than ever before and well on our way to building long-term growth and unlocking greater shareholder value.”
About Bed, Bath and 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 domestic 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.