Shares of Bed Bath & Beyond Inc. (BBBY, Financial) tumbled over 20% on Wednesday on the back of reporting fiscal first-quarter earnings results that missed expectations. The company also announced it replaced its CEO and other executive positions to focus on reversing recent results.
The Union, New Jersey-based home furnishings retailer reported a net loss of $4.49 per share, worse than the net loss of 48 cents per share from the prior-year quarter. The adjusted loss of $2.83 per share underperformed the Refinitiv consensus estimate of $1.73.
Company replaces CEO and other executives
Bed Bath & Beyond announced that Sue Gove, independent board director and chair of the board’s strategy committee, will replace outgoing CEO Mark Tritton. The former Target Corp. (TGT, Financial) executive also stepped down as a board member.
In addition, the company announced it named Mara Sirhal as executive vice president and chief merchandising officer.
Stock tumbles on earnings miss
Shares of Bed Bath & Beyond traded at an intraday low of $5, a new 52-week low and down approximately 23.43% from Tuesday’s close of $6.53. The stock is significantly undervalued based on Tuesday’s price-to-GF Value ratio of 0.36.
The home furnishings retailer has a GF Score of 63 out of 100 based on a profitability rank of 6 out of 10, a growth rank of 2 out of 10 and a rank of 4 out of 10 for financial strength, GF Value and momentum.
Bed Bath & Beyond’s financial strength ranks 4 out of 10 on the back of debt-to-equity ratios underperforming more than 99% of global competitors despite having a strong Altman Z-Score of 4.04.
Chuck Royce (Trades, Portfolio)’s Royce Investment Partners invested in 292,700 shares of Bed Bath & Beyond during the first quarter, giving the position 0.06% weight in its 13F equity portfolio.
