A pedestrian walks past the Bed Bath and Beyond store in San Francisco, California.
Justin Sullivan Getty Images
Bed Bath & Beyond said Wednesday it was replacing CEO Mark Triton as part of a change of leadership after the home goods retailer abruptly missed Wall Street’s expectations for quarterly profits and revenue.
Shares fell about 13% in pre-market trading.
Sue Gove, an independent board director, will step in as interim CEO, the company’s board said. It says it will focus on reversing the latest results, tackling supply chain and inventory issues and strengthening the company’s balance sheet.
“We need to achieve improved results,” Gove said in a statement. “Our shareholders, associates, customers and partners expect more.”
The company will also receive a new chief merchandising director. Mara Sirhal, who was recently general manager of health, beauty and consumables, will replace Joe Harzig, who is leaving the company.
Here’s how the retailer did in the three-month period ended May 28, compared to what analysts had expected, based on Refinitiv data:
- Loss per share: $ 2.83 versus $ 1.39 expected
- Revenue: $ 1.46 billion versus the expected $ 1.51 billion
The company’s net loss rose 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 is $ 2.83 per share. That was more than the $ 1.39 analysts had expected, according to Refinitiv.
The drop in sales fell to $ 1.46 billion from $ 1.95 billion a year earlier. That’s lower than the $ 1.51 billion estimate.
Bed Bath is under pressure from activist investor Ryan Cohen, chairman of GameStop and founder of Chewy. Earlier this year, Cohen’s company, RC Ventures, revealed a 10% stake in the company. Cohen called for radical change, criticized the high salaries of senior executives and called for the sale or separation of the company’s baby equipment chain, Buybuy Baby.
Bed Bath and Cohen reached a truce in late March. The retailer agreed to add new independent directors to its board and consider alternatives to the Buybuy Baby chain.
But the challenges facing the retailer of home goods are not diminishing.
Shares of the company have fallen 55% so far this year and hit a new 52-week low earlier this month. On Tuesday, the company’s shares closed at $ 6.53, down more than 3%.
This story is evolving. Please check again for updates.
Add Comment