The besieged company announced several changes to its leadership on Wednesday, including the replacement of Tritton. Meanwhile, Bed Bath and Beyond has selected Sue Grove, an independent director of the company’s board of directors, as CEO until she fines someone permanently for the position.
“We need to deliver improved results,” Grove said in a statement. “Top-level execution, careful cost management, increased supply chain reliability, prudent capital investment, a stronger balance sheet and strong digital capabilities will be important to our success.”
Bed Bath and Beyond (BBBY) stole Tritton from Target (TGT) in 2019. He was previously in charge of expanding Target’s private label brands, which he tried to replicate in Bed Bath and Beyond. But these items haven’t stuck with customers in the same way they did with competitors, nor have the company’s redesigned stores.
Tritton’s efforts did little to mask the company’s deep problems. On Wednesday, the chain reported significantly lower earnings than expected over the past quarter, and brand sales were down 27% from the same period a year ago.
This caused the company’s shares to fall by up to 20% in the first negotiations. It has now dropped 65% during the year.
Tritton’s departure was “inevitable” and that earnings report “does very little to inspire confidence in the company’s trajectory,” Neil Saunders, CEO of GlobalData, said in a note to the analyst.
“In our strong opinion, this was an aesthetic reinvention, copied from Target, with very little substance behind it,” Saunders said. “No wonder it collapsed quickly.”
He added that the company “has collapsed and a change of direction is the only way to regain some credibility with investors.”
On Tuesday, a new Bank of America report painted a bleak picture of the retailer, saying the company has cut back on air conditioning to quickly cut spending to offset falling sales. Bed Bath and Beyond told CNN Business that no change in the store’s temperature guidelines comes from the company.
“We have been contacted about this report and, to be clear, no Bed Bath & Beyond store was ordered to adjust its air conditioning and there have been no changes in corporate policy regarding the use of utilities, ”a representative said.
However, Bank of America analysts who have visited stores report growing concerns, including significantly cut business hours, reduced utilities, reduced store hours, and reduced business hours. remodeling canceled. Reward programs have also been reduced and replaced. Analysts expect Bed Bath and Beyond management to announce more store closures soon and stop opening their Buy Buy Baby stores.
Other worrying factors for the company include the resignation of two key financial executives in recent months, chief accounting officer John Barresi resigned in May and Heather Plutino, senior vice president of financial planning and analysis and business finance also left the company.
– Nicole Goodkind of CNN Business contributed to this report.