Bed Bath & Beyond Crumbles on Earnings Miss, CEO Replacement

The home furnishings retailer announces several executive changes

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Jun 29, 2022
Summary
  • Bed Bath & Beyond reports wider-than-expected loss per share for the quarter.
  • The company replaced its CEO and other executive positions.
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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.

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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.

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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.

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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.

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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.

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