Bed Bath & Beyond Inc Chief Executive Mark Tritton steps down

Bed Bath & Beyond Inc Chief Executive Mark Tritton has stepped down as part of a management shake-up, which the home goods retailer said was needed to reverse several quarters of weak sales. Shares fell 9% after the company reported a 23% slide in quarterly comparable sales on June 20. It named independent director Sue Gove in place of Tritton on an interim basis.

Along with company challenges, Bed Bath & Beyond is facing a tougher economic backdrop. “I step into this role keenly aware of the macro-economic environment,” Gove said in a statement, citing steep inflation and shifting buying habits.

Still, Gove said the company needs to improve its performance and that its first quarter results are “not up to our expectations.” In addition to working to fix supply chain problems, reduce costs and improve its balance sheet, Gove said Bed Bath & Beyond will embrace a “back to basics mantra” to win back customers. Bed Bath & Beyond said it expects same-store sales to recover in the second half of the fiscal year, but did not provide a specific forecast.

The retailer also named a new chief merchandising officer. Mara Sirhal, who most recently served as general merchandise manager of health, beauty and consumables, will replace Joe Hartsig, who is leaving the company.

Here’s how the retailer did in the three-month period ended May 28 compared with what analysts were anticipating, based on Refinitiv data:

  • Loss per share: $2.83 vs. $1.39 expected
  • Revenue: $1.46 billion vs. $1.51 billion expected

The company’s net loss widened to $358 million, or $4.49 per share, from $51 million, or 48 cents per share, a year earlier. On an adjusted basis, the company’s net loss was $2.83 per share. That was more than the $1.39 that analysts expected, according to Refinitiv.

Sales fell to $1.46 billion from $1.95 billion a year earlier. Wall Street expected sales of $1.51 billion.

Same-store sales, a key retail metric, declined 24% in the quarter compared with a year ago, worse than the 20.1% drop that analysts expected, according to StreetAccount. Online sales fell by 21% year over year. The figures include a 27% drop for its Bed Bath & Beyond banner and a mid single-digits decline for the Buybuy Baby banner.

Bed Bath & Beyond Interim CEO, Others Buy Stock in Rallying Call

Several executives at left-for-dead retailer Bed Bath & Beyond are attempting to send a message to the market that they are here to stay despite the recent dismal results and stock performance. After the close, the acting CEO and two Directors disclosed buying stock in the open market.

Interim CEO, Sue Gove, who just took over for outgoing CEO Mark Tritton, disclosed the purchase of 50,000 shares made on 07/01/22 at $4.61. In addition, Director Harriet Edelman bought 10,000 shares and Director Jeff Kirwan bought 10,000 shares.

Bed Bath & Beyond reported dismal results for its first-quarter of 2022. The retailer posted a loss of ($2.83), well below the consensus of ($1.32) as comparable sales plunged by 27%. Analysts have already largely thrown in the towel on the company, but the results promoted one analyst, Loop Capital’s Anthony Chukumba, to slash his price target to a paltry $1 per share.

The new insider buys are an attempt to rally support behind the stock as the company tries to turn around its fortunes with the help of investor Ryan Cohen, who in March added three of his designees to the board. Shares of Bed Bath & Beyond rose 7% after-hours following the insider purchases.

Source: CNBC
Source: Financial Post
Source: Forbes
Source: Investing