The company said it would repurchase $675 million worth of stock over the next three years while outlining an aggressive turnaround plan that includes store closures and supply chain investments.
Bed, Bath & Beyond said it will purchase $225 million in shares this year, as well as $150 million per year over the next three years as part of an accelerated shareholder return program. The retailer also said it will spend around $250 million on store remodeling over the same time frame, and an equal amount on 'reinventing' its supply chain.
The group said it sees free cash flows of between $500 million and $1 billion over the next three years, and low to mid-single-digit growth in comparable sales for its 2023 financial year. Sales for 2023 are expected to rise to around $1.5 billion, the company said.
"We have made tremendous progress this year to strengthen our financial position, focus our portfolio in core Home, Baby, Beauty & Wellness markets, rebuild our executive team, and launch a series of omnichannel services to win back customers," said CEO Mark Tritton. "We will build on these strong foundations with a three-year growth strategy that further elevates the shopping experience, modernizes our operations, and unlocks sales growth, margin expansion, increased cash flow, and strong and sustainable total shareholder return."