Bed, Bath and Beyond 2015 Annual Report Download - page 30

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PROPOSAL 3—APPROVAL, BY NON-BINDING VOTE, OF 2015 EXECUTIVE COMPENSATION
We recognize that the investments we are making impact our operating profit in the short term. However, this multi-year
investment cycle, including fiscal 2015, has produced meaningful change across many key areas of our business including
Information Technology, Digital and Mobile capabilities, Analytics, Pricing, Merchandising, Marketing, Store Operations,
Customer Service, Real Estate as well as our Supply Chain network.
We believe that our foundation has never been stronger than it is today, including the quality of our people, our merchandise
assortments and our technologies. We remain steadfast in making the right investments to position our Company for long-term
success. We are excited about the opportunities that will enable us to continue to do more for and with our customers and to
strengthen our business as a world-class omnichannel retailer.
Our fiscal 2015 financial performance reflects the benefit of the significant investments in our business, steady progress on our
strategic initiatives, and the return of $1.1 billion to our shareholders through share repurchase.
This is an exciting time for Bed Bath & Beyond. We are confident that we are making the right investments to position our
Company for long-term profitable growth, and to further enhance shareholder value. To that end, subsequent to fiscal 2015,
our Board of Directors authorized a quarterly dividend program that will commence in fiscal 2016. Our Board took this action in
recognition of the Company’s strong cash flow generation and confidence in our business, as well as to provide a more
balanced approach to returning value to shareholders. In addition to the dividend, the Company will continue to repurchase
shares under our current $2.5 billion authorization, subject to business and market conditions.
Our Performance
During fiscal 2015, we made steady progress on our strategic initiatives, including significant investments in our people,
technology, physical and digital channels and supply chain, to further strengthen our foundation for future growth.
Select operational highlights:
• Continued to expand, differentiate and improve our merchandise and related services and solutions.
• Developed enhanced analytics capabilities, including sophisticated, predictive modeling to drive a more personalized
targeted marketing strategy.
• Introduced new services and experiences such as online appointment scheduling for registry and a new virtual coupon
wallet called My Offers, which organizes and stores print and digital coupons so customers can access and redeem
them conveniently online or in-store.
• Continued development of our new Point-of-Sale system, including both hardware and software elements. The new
system—to be piloted in fiscal 2016—will provide a more efficient customer check out process by automating many
manual processes, as well as greatly enhancing our promotional capabilities.
• Progressed development of our Liberty View project in Brooklyn, a unique shopping venue which will house four of our
concepts and provide a more experiential shopping environment.
• Opened a new Customer Contact Center in Layton, Utah to enhance our 24/7 customer support.
• Expanded our supply chain network, including a new distribution facility in Las Vegas, Nevada, to provide more flexible
fulfillment options and support anticipated growth across all of our channels.
• Upgraded our proprietary internal Web-based platform, The Beyond Store, and integrated it with our Bed Bath & Beyond
and buybuy BABY selling websites and mobile channels, to enable our associates to better service our customers in
creating web orders, comparing products, and reading product reviews.
Select financial highlights:
• Net sales of $12.1 billion increased approximately 1.9% or approximately 2.3% on a constant currency basis.
• Comparable sales increased approximately 1%, or approximately 1.4% on a constant currency basis.
• Comparable sales consummated through customer facing online websites and mobile applications increased in excess
of 25%.
• Diluted EPS of $5.10, including $0.06 of net benefits from certain non-recurring items, including a favorable state audit
settlement.
• Generated $1.0 billion in net cash from operations and returned $1.1 billion to shareholders through share repurchase.
• Subsequent to fiscal 2015, announced Board authorization of a quarterly dividend program, which will commence in
fiscal 2016.
For more information regarding our fiscal 2015 financial performance, see our Annual Report on Form 10-K for fiscal 2015 filed
with the SEC on April 26, 2016.
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