Bed Bath & Beyond is facing a crisis. The retailer's stock plummeted to a 26-year low, after the company reported same store sales dropped 24% from a year ago and the exit of two key executives.
The retailer's stock plummeted to a 26-year low Wednesday, after the company reported same store sales dropped 24% from a year ago and the exit of two key executives — CEO Mark Tritton and chief merchandising officer Joe Hartsig.
"Even during these periods of industry-wide challenge, our shareholders, associates, customers and partners all expect more from us, and I couldn't agree more," newly appointed interim CEO Sue Gove said on an earnings call.In July 2020, Bed Bath announced it would close 200 of its namesake stores over two years. The retailer also operates 135 buybuy Baby stores and 51 stores under the names Harmon, Harmon Face Values or Face Values.
Former Target executive Tritton's reinvention efforts, such as briefly limiting coupons and decluttering stores, have led the company into in a "hot mess," GlobalData retail analyst Neil Saunders wrote Wednesday. "The truth is that Bed Bath & Beyond’s transformation strategy has not worked," Saunders said. He described the company's new brands as "mediocre" and said it completely neglected services like wedding registries while dropping the ball on operations.The company is also swimming in excess inventory, a problem that has plagued other retailers who overcorrected for supply chain issues.
During its latest fiscal quarter, Bed Bath's stockpiles ended 15% higher than last year, even as sales fell 25% — a difference that zapped $500 million in cash, CFO Gustavo Arnal told
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