“After thorough consideration, the Board determined that it was time for a change in leadership,” said independent director Harriet Edelman.
Bed Bath & Beyond (BBBY) – Get Bed Bath & Beyond Inc. Report shares plunged lower Wednesday after the struggling home retailed posted weaker-than-expected first quarter earnings and unveiled the resignation of CEO Mark Tritton.
Bed Bath & Beyond said it posted an adjusted loss for the three months ending on may 28, the group’s fiscal first quarter, of $4.49 per share on revenues of $1.46 billion and a 27% slump in comparable sales.
Tritton, who has lead the group since November of 2019, will leave both his role as CEO and on the Bed Bath & Beyond board to make way for independent director Sue Gove, the company said.
“After thorough consideration, the Board determined that it was time for a change in leadership. Our banner’s heritage is built on the premise that when customers are shopping for the home, Bed Bath & Beyond is the perfect destination for unique solutions and inspiration,” said independent chair Harriet Edelman. “We must deliver that proposition for customers, drive growth, and unlock the value of the banners.”
“Today’s actions address company performance, the macroeconomic conditions under which we are operating, and the expectations of the Board on behalf of shareholders,” she added. “We are confident Sue brings the right combination of industry experience and knowledge of Bed Bath & Beyond’s operations to lead the Company, focus our resources, and revise strategy, as appropriate.”
Bed Bath & Beyond shares were marked 13.3% lower in pre-market trading immediately following the surprise earnings release and new of Tritton’s departure to indicate an opening bell price of $5.66 each, a move that would extend the stock’s year-to-date decline to around 62%.