Bed Bath & Beyond Inc. plans to spend $1 billion in its fiscal year 2020 turnaround plan.
The money will be spent across capital return to shareholders, debt reduction, and reinvestment in its core business operations to drive growth, according to a Tuesday announcement.
Net proceeds from its sale of PersonalizationMall.com announced Tuesday to aid the company’s reported “strong cash position,” along with the proceeds from the sale-leaseback transaction announced in January and anticipated cash from regular operations.
“The financial strength of our business allows us to take the important steps needed to return capital to our shareholders and reduce our debt, while at the same time also investing in our customer,” CEO Mark Tritton said in a prepared statement. “This balanced approach to the use of our capital is expected to enhance shareholder value, improve the in-store and online experience and position our company to achieve our long-term objectives to deliver sustainable growth.”
Bed Bath’s fiscal 2020 capital allocation strategy includes up to $600 million in capital return to shareholders and debt reduction and $350 to $400 million in investments into stores, IT and digital projects, and supply chain infrastructure.
Bed Bath expects to maintain a strong cash position, creating future financial flexibility, according to the announcement.
A spokesperson for Bed Bath did not return a request for comment by press time.