and today’s connection update Thank all in Janet, ongoing afternoon. near-term strategic transformation. business joining our like you of on for this actions the thank priorities our provide an call, company’s with you, supporting I’d to us On
call of the your take Then, a our operational over as and to financial the questions. turn review Following will highlights year. we’ll Robyn our my as comments, I the for well for outlook quarter, of
and four growth, portfolio including resetting good are line key progress base, cost asset the the feel against stabilizing banners, top the retail our refining structure. and driving we making optimizing sales We the our of reviewing priorities, about and company’s near-term organization including structure,
in Strategy the Business This tremendous I’m of Transformation Board being guidance of and even and highly Review and of us. in more is the done front support a with team. work engaged opportunity Committee the the leadership confident
this update like priorities, what as means each against path made our of progress on would the well provide forward. I have as Today, to four an for we our
meaningful a see customers laying our ensure success. to for long-term critical our difference holiday this for foundation company while season, is transforming goal Our
Chairman Last will other in our now progress details enthusiasm shared on those provide I initiatives and specific more pursuing. and by for I a providing actions our our shareholders, Patrick examples we Gaston letter several actions. of to are near-term month, a few
Our priority we optimizing our insights new core customer our line proposition. is using is for A improving identify our our are stabilization component sales number opportunities. one top based of stabilizing on our sales overall and efforts opportunities to data-driven and value transformation that
value a customers. experience deliver with multi-pronged different and value proposition To shopping and are relevant create our and we and experience to and both for are this that includes long-term improved a pursuing to approach of products. a strategies near-term providing committed We our noticeably compelling shopping customers assortment on omni-channel commitment, a differentiated
are series experience. sales and we reset the physical of already these of stores of refresh areas most underway at as almost of more First, Bath rapid stores, We entry high & to drive a to and intend create visually store environment Bed and our in ways Beyond inviting improve and improvements a profitable shopping with checkouts. appealing highest volume through traffic traffic to XXX such a trends, store
These sales technology items, store our will to engagement. and associates’ basic complemented exciting of end visual improvements, a customer display enhance upgraded and including installation be front facing elements drive tools impulse with to the and of customer new to queue the lines at at merchandising rollout ability checkout of associate
the holiday to of XXXX be We season. most completed in advance expect the updates of
and & our in over drive of life managers our customers, further on half we the to plan performance are period. holiday branding drive store reengage implement Included marketing sales loyalty in and further Beyond Bath frequency. incentives adding To marketing support based promotional and sales, to as back well foundational improvements shopping for we Bed targets as holiday in are Second, year. the to stage in this for investments the spend
period. this special It also Cyber aggressively online retail of in-store during to for week events important through part Monday promotional and efforts Thanksgiving includes plans as our target
focus drive increased engagement. will to offers and special in acquisition BEYOND+ well, membership customer enrollment during critical including our time Increasing promotional be as a program this
Our much. average BEYOND+ frequently and than today average non-member Xx shop spend customers Xx our members as on more average on
reinvesting our video, marketing overall customers shop them. savings our social mix into coupons receive by mail efforts optimize to channels, who continue direct ensuring to paid while continue use We advertising, and to including display digital from
our We’re with personalization marketing launched XXX also more than improving efforts test far. campaigns so
about We campaign have quarter to of subsequently a the audience. scaled one larger reach
providing customer data channels. Our while for reach of launch across new experiences new platform the faster allows personalized greater
are have XX% click XX% reached Our through personalization rate five at an email within efforts total and emails XX%. email the months, than of our personalized subscribers more customers engaging average receiving between and of past in
our and forming social cross-functional and a focused media team personalization, approaches. on are testing marketing rapid driving customer Similar we through agile of approach acquisition content targeting channels with cycle new to sales within
We of out themes are with new beyond events and are anything bolder relevant rolling that developed process the also framework the around we’ve a other and done promotional bigger, retail before. that calendar in holiday
This our our greater and channels. expand of our new includes in way, on our communication digital to years across cohesive extent compelling, pricing individual amplify and all in additional radio, to and is such promote a changes video significant to coordination in-store customer previous holiday better communication ensure much touch existing offers on promotional to and online to channels as communication use than investments plan in we promotions more both a our points, while through also
to customers. pricing make in-store strategies actions our refining to noticeable algorithms, pricing strategic continue address decisions to and deliver our These pricing include value to price perceptions. online We dynamic and customer
the pricing and resulting more The optimizing both less sell effective accelerating top-line implementation profitability improvement. of assortment. software fashion drive that and will through, and optimization aged growth in We of profit markdown inventory processes and our seasonal is believe
provide These to will reinvigorate successful demanding consumers and in transformation seamless our to omni-channel shopping allow require enhancements our customers more experience. and channels a us digital both provide the near-term the shopping our iconic invest brand. opportunities transformation and will significant required foundation physical to are execute Moreover, to
To will their they want want where receive our get meeting at shop and and to how to start, where purchases. how customers they we and better
of to app. site and invest digital while our We in improvements mobile and continue customer-facing to material search recommendations our the functionality channels,
by are items that also toward product friction pages by the working checkout systematically to the We the estimated dates process customer warehouse. we for adding throughout experience and removing streamlining delivery
XX% convert second reserve Pickup online to the year-over-year yielding In-Store, pickup lockers. enable and store provide like in-store favorable customers the service have or plan are These items convenience Buy app Online grown to more our conveniences to pickup our results mobile in for to also sales, which over curbside quickly quarter. at We pick changes in positive up
other initiatives, Next these In initiative the store and Bed stores. To addition as help a our and fleet developing spoke leveraging our multi-year plans, a plan from of about, are we’re our I majority Bath locations. Generation execute initiative our upgrade refresh learnings to of we some & Beyond refresh just Lab optimization such to
visual as with also We incorporate will new upgrades. technology and along insights branding consumer from well standards, as research
We will experiences and convenient most enable resonate them. of will them with have our believe with series wherever customers that is a brand to we for our from interact store
Our than change done past store renovation plans noticeable in we will this we’ve customers. believe our the are for substantial more anything and plan deliver
fiscal first the wave in renovations store to expect XXXX. We early of begin
Among embedded opportunity better long are cost Our already actions these dollars second broader initiation business. cost near-term taken, in state optimization the several which reset months priority transformation align million of estate to the hundred with savings about effort, structure comprehensive to there of efforts. We commenced is our our real the believe ago. current nine the first, term of a over
have these those real-estate dated expected favorable many longer and previously been able from beyond. including with working all terms. landlord efforts occupancy cases, contributions, and we with to savings terms discussed, more specialized achieve a to are As benefit have renegotiate XXXX to we lease we leases, fiscal are consultant In
necessary the we continue the future. and efficiencies. structure we bright drive to our managing Beyond are we ensure position greater today review & Bath committed to right to operational costs is business for resources what for We to to and Bed a overhead Next, doing remain have
ongoing completed are actions: approximately our corporate Directors, Although X% including taken the and Officers, we Managers affected and following of a reduction, workforce Executive Professional Vice we necessary, changes Staff. to-date more staff, which have Presidents, our is review First,
changes organization Second, for responsibilities our underway, transformation in of we reporting some have support structure and realigned to leaders. senior the better the including structure
finance and to within merchandising outsourcing is year. the in we certain calendar Third, expected result which in of are functions the XX third-party, process to positions a nearly elimination areas of processing transaction later our in the
fiscal with These will annualized and actions, leadership our basis. for senior million our of savings changes in optimization savings, $XX million combined just an XXXX real on estate approximately other cost structure, $XX including over generate
chain supply for optimize within assessment sourcing label an global and work firms. capabilities. including our we this as net, we leading wider well a actively as term, the to our private engaging initiative, of casting are cost structure proprietary industry’s are with and longer As opportunities we our sourcing accelerate To brands, the
opportunity several practices. only we differentiate As implement million a see term over of but not cost initiatives the direct lever structure range import branding next customer proposition, in months, multiple hundred to of longer optimize label savings few to through improved also to achieve goods value our a and Private the sourcing our provides in dollars. we margin direct
label for Beyond Bed significant margin penetration have private well sourced, and opportunity that is is percentage our smaller our Today, with below therefore & competitors, Bath we directly improvement. a within a
Kitchen increasing as areas Artisanal as Supply, and UGG, the Wamsutta, national Oliver, of private as portfolio such such Olivia One as Therapedic key focus SALT, and our penetration key of our of is Brookstone. brands and ORG, & brands preferred Bee label our Willow, well overall
in communicated part Lane furnishing Kings are XXXX One of House label of home in-house and Open and These are previously XXXX. brands launching plans additional decorative private process We to the six introduce brands, also our two Marmalade. during
last Willow. initial Bee introduction Our launch with occurred of the spring &
near-term asset third to optimize is our review Our priority and base.
recent in shareholder next $X we aggressively to plans XX As we up letter, at over reduce billion retail the months. to of inventory the have mentioned
second in As a result of the million write-down inventory took quarter. this $XXX decision, we
support centers Beyond refresh & assortment, will inventory us faster more inventory and of to this quickly and refocus drive believe of distribution customers allow sales. enable labor activity both our reset well better for a store to to in as our Bed aggressive levels stores disposition as Bath to to our We enable us
events, This removed will as the accomplished stores more of the managed liquidator, from markdowns at In with inventory clearance than short all series million $XXX season. our of holiday through XXXX the prevent be an term, retail of to be a sales. cannibalization as before independent assistance will of approximately to be thoughtfully well and
Beyond & fleet physical serve. within markets a the Bed We with assessment balance program Bath have also for our digital all to create we initial between stores completed better optimization our and presence a
location party, performance, the third various demographics a locations profitability, store of analyzed how store’s to markets position each best US in customer assistance geographic understand our we have to the With across country. and
communicated resulted in Bath While stores. approximately XX stores of total Beyond store approximately XX we XXXX has XXXX, other the optimization to Bed total closures & in across in concept previously close and fiscal work concepts, XX XX our all estimate stores an fiscal including fleet decision
With we focus profitability this of efficiency. on that fleet operating and benefit from our action, and the increasing our portfolio our are remaining remaining driving renewed believe traffic will
have concepts than Through all over going capitalize especially have for processes refined more our we lease this project, performance, expiring we leases we will couple optimization next to on evaluating benefit cadence, look years. us internal the across fleet which XXX of stores’ our heavy where our expiration forward, as
for significant cash could the transactions, We also evaluating are company. generate opportunities which sale for leaseback
nearly including buildings, have owned over a of real retail We a feet and million both little well square as square feet as X of X.X land. estate million non-retail
evaluating several interested from currently are parties. offers We
While all a concepts of other alignment Beyond, priorities well under way. is review strategic & the of our are business Bed Bath focused on near-term primarily the
advisors, As these certain realize with realign we previously outside value of assess assets. announced, greater to are from and how to working Goldman including Sachs, better
close As of businesses. including acted one the our are review, evaluating outside productive brands. time, of same in our e-commerce interest several of we our range of least part options, we to At have strategic a down
made from decisions final unlocked While make concept and business we value cannot transactions. we significant can potential believe sale assurances, any leaseback be and no have
Our organization. is fourth look we have transform we in priority structures and It team place is only expertise, a a the not connected to critically that facilitate and as talent also final near-term Bath structure. right fresh take & efficient our but the we at important to Bed ensure organization right Beyond, and
reporting period, organization concepts structure business have we all one now the such realigned interim leader. this other During of report into that the
this Beyond streamline the is This First, to our ways: these and senior enables two businesses; a review it transforming focus second, us the and strategic allows our benefit on rest leaders Bed in & business. of of to expedite Bath
from today, making you fronts. heard progress good are across As my update multiple we
support. while current for team are also the focus their value teams I’m hard to Board Our operating with model the are operating urgency shareholders. work, commitment and and maintaining and and and focus, proposition management our on grateful a our customers value Together, long-term challenging delighting and delivering
on driving our our Before efforts. are the relentless top performance, year. of our of our earnings briefly closing, quarter, to transformation pleased the to challenges ongoing for adjusted this and share like I’d have line the diluted company’s the delivered second effort progress quarter outlook comment net in per teams reflecting full and results in $X.XX we Despite the
impact we moment, a limit in vendor the customers. monitoring our our on discuss closely with will to Robyn working partners are and and tariff the As situation business
incremental XB increase from X As still XA our the from the tariff XX% evolving, tariffs not or does any include and List List financial impact is this items. guidance situation to
in XXXX We to excluding recent continue incremental results guidance, tariffs. financial to expect line our with fiscal our be most
the I’ll year. Robyn now our review quarterly call over to financials outlook turn the for our to and
