Bed Bath & Beyond said on Wednesday that it is replacing CEO Mark Tritton as part of a leadership shakeup after its sales plummeted and it missed expectations.
The shares fell before the market opened.
Sue Gove, an independent director on the board, will take over as interim CEO. She will address supply chain and inventory issues and strengthen the company's balance sheet.
Gove said that they must deliver better results. Everyone expects more from our shareholders, associates, customers, and partners.
A new chief merchandising officer is going to be hired. Joe Hartsig is leaving the company and will be replaced by Mara Sirhal.
The retailer did better than analysts expected in the three-month period ended May 28.
The company had a net loss of $358 million, or $4.49 per share, compared to $50 million, or 48 cents per share, a year ago. The company had a net loss of $2.93 per share. According to Refinitiv, that was more than the analysts anticipated.
The sales fell from a year ago. Sales had been expected to be less than that.
The decline in same-store sales in the quarter was worse than analysts expected. Its online sales went down. The Bed Bath & Beyond banner saw a 27% drop and the Buy buy Baby banner saw a single digit decline.
Ryan Cohen is an investor in Bed Bath. RCventures revealed a 10% stake in the company early this year. Cohen called for sweeping changes, criticized top executives, and urged the sale or spinoff of the company's baby gear chain.
In March, Bed Bath and Cohen came to an agreement. New independent directors will be added to the retailer's board and it will look into alternatives for the Buy buy baby chain.
The challenges for the home goods retailer aren't going away.
The company's shares hit a new 52 week low earlier this month. The company's shares were down more than 3%.
Berkeley Research Group was hired by Bed Bath to look at its inventory. Russell Reynolds is looking for a permanent CEO.
You can read the earnings release here.
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