Bed, Bath and Beyond 2014 Annual Report Download - page 4

In addition to our retail operations, we are also growing our complementary institutional business – which includes our
subsidiaries Harbor Linen and T-Y Group − by leveraging our combined expertise and product knowledge to provide products
and services to hospitality, travel and other institutional customers.
Increasing Productivity, Delivering Shareholder Value
Our performance in fiscal 2014 reflects the strength of our underlying business and the progress of our strategic investments
to create a seamless and more dynamic shopping experience for our customers.
We delivered solid financial results, with fiscal 2014 net sales of $11.9 billion and net earnings per diluted share of $5.07,
increases of approximately 3.3% and 5.8%, respectively. We continued to enhance shareholder value by returning more than
$2.2 billion to our shareholders through our share repurchase programs, while also continuing to make the strategic
investments necessary to improve our omnichannel capabilities.
Also of significance during fiscal 2014, was our offering of $1.5 billion of senior unsecured notes in July, as well as a $1.1 billion
accelerated share repurchase program, which was completed in December 2014. We believe that this was the appropriate time
to enter into these transactions to enhance shareholder value, while at the same time maintaining our financial flexibility.
We continue to demonstrate that our business strategy can create shareholder value while enabling us to invest on an
ongoing basis for long-term growth.
Focusing on the Future
This is an exciting time for our Company. The pace of change in our business is remarkable. The retail environment is also
changing rapidly. However, the one thing that has not changed is our mission to just take care of the customer!
We are extremely excited about our future. We are, and must remain, flexible and nimble to be able to respond to the
ever-changing industry landscape. We are committed to making the necessary investments to position our Company for long-term
success.
Some of our fiscal 2015 strategic initiatives include:
•Ongoing investments in analytics, marketing and technology. While digital technology is transforming the way customers
shop, we are leveraging available information and technology to continue building an ever-expanding 360 degree view
of our customers to be able to interact with and service them more personally and directly.
•Increasing and differentiating our merchandise and service offerings to continue doing more for and with our customers.
As we do this, we maintain a strategic focus on the categories of business that strongly resonate with our customers.
•Further enhancing our online and mobile channels to create a more personalized and seamless customer shopping
experience. For example, we have developed a new digital tool called ‘‘My Offers,’’ that will enable customers to more
conveniently organize, store and redeem their Bed Bath & Beyond offers.
•Opening an additional distribution facility to support the growth of our online direct-to-consumer channel and our
health and beauty care offerings. The creation of more flexible fulfillment options will allow us to deliver orders more
quickly and cost effectively.
•Opening a new Customer Service Contact Center to support the anticipated growth across all of our channels and
concepts. This new facility will enable us to provide an even higher level of customer service.
•Continuing development of a new and more robust point of sale system that will provide additional customer benefits in the
future such as mobile payment options, payment in foreign currencies, and the ability to redeem personalized coupons.
•Developing a unique shopping venue in Brooklyn, New York to showcase our ever-increasing and evolving merchandise
assortment, as well as our omnichannel capabilities.
BED BATH & BEYOND 2014 ANNUAL REPORT
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