: Bed Bath & Beyond shares sink after it ousts CEO, reports wider-than-expected quarterly loss

by | Jun 29, 2022 | Stock Market

Bed Bath & Beyond Inc. shares sank 20% in Wednesday trading after it announced not only disappointing fiscal first-quarter results, but also the ouster of its chief executive, Mark Tritton. “After thorough consideration, the Board determined that it was time for a change in leadership,” said Harriet Edelman, independent chair of the home goods retailer’s board.

“Today’s actions address company performance, the macroeconomic conditions under which we are operating, and the expectations of the Board on behalf of shareholders. We are committed to addressing the urgent issues that have been impacting sales, profitability, and cash flow generation.” Sue Gove, an independent director on the board since May 2019 and 30-year retail industry vet, will serve as interim CEO. Tritton has also left the board. Tritton, previously chief merchant at Target Corp.
TGT,
-1.41%,
stepped into the Bed Bath & Beyond
BBBY,
-19.68%
CEO position in November 2019. Bed Bath & Beyond continues to assess options for its buybuy Baby business and is focused on ways to improve the banner’s execution in the near term. Edelman praised Tritton’s spearheading of the retailer’s Owned Brands and investments in areas like technology during the earnings call. Going forward, Gove says the company will be focused on driving traffic to stores and the Bed Bath & Beyond e-commerce site, stabilizing the supply chain and strengthening the balance sheet. The company aims to clear through excess inventory and reduce planned capital expenditures by at least $100 million. In addition to the CEO change, Mara Sirhal, most recently senior vice president and general manager for the Harmon brand, has been named chief merchandising officer. She replaces Joe Hartsig, who is leaving the company. Read: Bed Bath & Beyond is reducing store hours and turning down the air conditioning to cut costs, analysts say For the first quarter, Bed Bath & Beyond posted a net loss of $357.7 million, or $4.49 per share, after a loss of $50.9 million, or 48 cents per share, last year. Adjusted losses per share of $2.83 was wider than the FactSet c …

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