Bed Bath & Beyond CEO: 'We are experiencing short-term pain'
New CEO Mark Tritton has his hands full
It appears Bed Bath & Beyond did not have a happy holiday season.
The home goods retailer told investors on Tuesday that comp-store sales tumbled 5.4 percent during the first two months of the fiscal fourth quarter 2019, December 2019 and January 2020, due to inventory issues, heavy promotions and a drop in in-store traffic.
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Investors battered the stock in the extended session, driving shares down 25 percent after a modest rise Tuesday despite some traction the retailer had in digital sales.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BBBY | NO DATA AVAILABLE | - | - | - |
"We are experiencing short-term pain in our efforts to stabilize the business, including the pressures of store traffic trends coupled with our own executional challenges..." said CEO Mark Tritton, who took the role in October of last year.
BED BATH & BEYOND TAPS TARGET EXEC FOR CEO SPOT
The former Target executive came with much fanfare as investors pushed the stock up after his hiring.
Mark J. Tritton/Photo: Bed Bath & Beyond
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 149.99 | -0.85 | -0.56% |
Since, the retailer is experiencing the challenges plaguing weaker industry players, some of which have been forced to close stores, such as Macy's and Pier 1.
Still, Tritton is optimistic he can turn things around.
"We are beginning to make bold and broad-based changes to modernize our business and better serve our customers. Our ability to achieve this and change the trajectory of our current results will take time, as we remaster the fundamentals of merchandising, pricing and promotion, and focus on our digital channels as part of our go-forward strategy," he said in the statement.
The results released Tuesday are unaudited and will be formally reported on April 15, 2020.
Bed Bath & Beyond shares have fallen 17 percent this year while the S&P 500 has gained 4 percent and is sitting at a new record.