Bed Bath & Beyond (BBBY) Earnings Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 23, 2026

AI-Generated Deep Dive Summary

Bed Bath & Beyond (BBBY) reported mixed results in its latest earnings transcript, showing a 10% year-over-year decline in revenue, partly due to the exit of Canadian operations. However, key improvements emerged, including a 7% increase in average order value (AOV) driven by enhanced online offerings and larger basket sizes. The company also saw a significant rise in orders delivered, up 13% quarter over quarter, alongside a 160 basis point improvement in gross margin to 24.6%. Despite these gains, the business remains focused on recovery, with adjusted EBITDA improving by $23 million year over year but still reporting a $4 million loss. The company highlighted cost-saving measures, including a $15 million reduction in sales and marketing expenses and a $15 million decrease in general and administrative expenses. These efficiencies contributed to an improved cash position of $207 million at the end of the quarter, reflecting better financial health. Bed Bath & Beyond also emphasized its omnichannel strategy, targeting $1.5 billion in annualized revenue through this initiative, with additional growth expected from unnamed acquisitions. Looking ahead, management outlined a cautious yet optimistic outlook for 2026, projecting low to mid-single-digit revenue growth and improved EBITDA performance. The company expects sequential quarterly improvements, with the first quarter targeting at least a 30% year-over-year increase in both revenue and EBITDA. However, near-term challenges include anticipated margin compression due to shifts in the omnichannel mix toward lower-margin categories during patio season. Bed Bath & Beyond’s strategy centers on leveraging technology and efficiency initiatives, including AI tools, to enhance conversion rates, inventory productivity, and cost management. The company is also developing proprietary loyalty programs and a digital home operating system to unify customer data across service pillars. These efforts aim to drive long-term profitability and growth, but success will depend on the timely integration of recent acquisitions and achieving expected synergies. While the business has made strides in reducing costs and improving margins, it faces risks such as transaction and transition costs associated with mergers and

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Originally published on The Motley Fool on 2/23/2026