Reports Q3 revenue $373M, consensus $397.17M. Jonathan Johnson, CEO, commented, “On June 28, we acquired the Bed Bath & Beyond brand and intellectual property – a brand ranked in the top five most recognized home brands in the U.S. Within hours of closing the deal, we revived the brand in Canada, and in just thirty-three days we relaunched the brand in the U.S. under our asset-light operational model….To provide some clarity on the economics of the deal, we break down this opportunity into two numbers totaling approximately $175M: (1) approximately $25M we paid to the bankruptcy estate for the brand and related IP and in acquisition-related fees, and (2) approximately $150M of additional investment to launch the brand, reignite the customer file, and expand and create new categories while working to maintain our company’s core customers. We are in the early stages of capitalizing on our recent acquisition. Since launching the new Bed Bath & Beyond in the U.S. on August 1, we have been successful in acquiring new customers and reactivating past customers. Total active customers grew sequentially after over two years. As I’ve said from the onset, growing the customer file is our primary measure of success. Orders have returned to positive year-over-year growth for the first time in over two years. This acquisition has positioned us for growth over the long-term”.
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