The shares of Bed Bath & Beyond Inc. they plunged 12.7% in pre-market trading on Wednesday after announcing not only disappointing first-quarter fiscal results but also the dismissal of its CEO Mark Tritton.
“After extensive consideration, the Board determined it was time for a change of leadership,” said Harriet Edelman, independent chairwoman of the board of the household goods retailer.
“Today’s actions address the company’s performance, the macroeconomic conditions in which we are operating and the Board’s expectations on behalf of shareholders. We are committed to addressing the pressing issues that have been affecting sales, profitability and cash flow generation. ”
Sue Gove, an independent director of the board since May 2019 and a 30-year veteran of the retail industry, will act as interim CEO.
Tritton has also left the board. Tritton, formerly chief trader of Target Corp. TGT,
went into the bathroom and beyond the BBBY,
CEO position in November 2019.
Bed Bath & Beyond continues to evaluate options for your BuyBuy Baby business and focuses on ways to improve banner performance in the short term.
In addition to the change of CEO, Mara Sirhal, recently senior vice president and CEO of the Harmon brand, has been named director of merchandising. He replaces Joe Hartsig, who leaves the company.
Reads: Analysts say Bed Bath & Beyond reduces store hours and reduces air conditioning to reduce costs.
During 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, l ‘last year. Adjusted earnings per share of $ 2.83 were broader than the FactSet consensus for a loss of $ 1.39.
Sales of $ 1.463 billion fell from $ 1.954 billion and lost the FactSet consensus by $ 1.513 billion. Comparable sales fell 23%, more than FactSet’s consensus for a 20.1% drop.
“In the quarter there was a sharp change in customer sentiment and since then pressures have increased materially. This includes strong inflation and fluctuations in buying patterns, leading to a significant alteration in our sales. and inventory that we will work to actively resolve, “Gove said in a earnings statement.
The company expects comparable sales to recover during the second half of fiscal year 2022.
Bed Bath & Beyond, which had reached meme stock status earlier this year, has seen its shares fall 55.2% during the year to Tuesday. The S&P 500 SPX benchmark,
has fallen 19.8% during the period.