The beleaguered company announced several changes to its leadership on Wednesday, including the replacement of Tritton. In the meantime, Bed Bath and Beyond tapped Sue Grove, an independent director on the company’s board, as CEO until she found someone permanent for the job.
“We need to deliver better results,” Grove said in a statement. “High-level execution, prudent cost management, greater supply chain reliability, prudent capital spending, a stronger balance sheet and robust digital capabilities will all be important to our success.”
Tritton’s efforts did little to mask the company’s deeper problems. On Wednesday, the chain reported earnings well below expectations for the latest quarter, and the brand’s sales were down 27% from the same period a year ago.
This sent the company’s shares down as much as 20% in early trading. It is now down about 65% for the year.
Tritton’s departure was “inevitable” and the earnings report “does very little to inspire confidence in the company’s trajectory,” GlobalData chief executive Neil Saunders said in an analyst note.
“From our direct perspective, this was a cosmetic reinvention — copied from Target — with very little substance behind it,” Saunders said. “It’s no wonder he fell apart so quickly.”
He added that the company “has been battered and a change in management is the only way to restore some credibility with investors.”
On Tuesday, a new report from Bank of America painted a bleak picture for the retailer, saying the company had cut air conditioning to quickly cut spending to offset falling sales. Bed Bath and Beyond told CNN Business that any changes in store temperature guidelines were not from the company.
“We have been contacted about this report, and to be clear, no Bed Bath & Beyond stores have been asked to adjust their air conditioning and there have been no changes in company policy regarding air conditioning. ‘use of public services,’ a representative said.
Still, Bank of America analysts who have made store visits report growing concerns, including work hours that have been dramatically reduced, reduced utilities, reduced store hours and renovation plans. cancelled. Rewards programs have also been reduced and replaced. Analysts expect Bed Bath and Beyond management to soon announce further store closures and halt openings at its Buy Buy Baby stores.
Other troubling factors for the company include the resignation of two key finance executives in recent months, chief accounting officer John Barresi resigned in May and Heather Plutino, senior vice president of financial planning and analysis. and commercial finance also left the company.
— Nicole Goodkind of CNN Business contributed to this report.
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