Bed Bath & Beyond Inc. (NASDAQ: BBBY) revealed that it is projecting to execute its $1 billion three-year share buyback program by the end of fiscal 2021, two years before the schedule. Bed Bath is intending to continue its revolution and execute successful strategies that will strengthen its near-term and long-term value creation.
Previously, since the end of fiscal 2020, BBBY has executed the repurchase of its $600 million of shares. Now the company is intending to buy back the remaining $400 million of the program by the end of fiscal 2021, particularly over the Q3 and Q4. BBBY believed that this program further underlines its faith in its reversal, and its ability to concurrently generate positive cash flow, maintain a strong balance sheet, and invest in its long-term growth, all while delivering significant capital to shareholders.
Furthermore, BBBY has completed around $225 million in repurchases during the first six months of the current fiscal year while $100 million remains under its $325 million plan for fiscal 2021. After the new buyback decision, the total projected share buyback amount for fiscal 2021 has now soared to roughly $625 million, nearly multiplying the initial share buyback plan of $325 million for the current fiscal year.
Additionally, the method, timing, and actual number of shares bought back will be subject to a variety of factors. The factors include price, general business and market conditions, and alternative investment opportunities. The Company does not look forward to today's announcement to have a meaningful impact in fiscal 2021.
BBBY disclosed that the reviewed share buyback plan is in line with the Company's capital allocation principles of investing for growth and revolution, guaranteeing financial flexibility, and returning cash to shareholders. The total liquidity was roughly $2.0 billion as of August 28, 2021, together with the firm's asset-based revolving credit facility.