A pedestrian walks past a Bed Bath & Beyond store in San Francisco, Calif.
Justin Sullivan | Getty Images
bed Bath and Beyond On Wednesday it is replacing CEO Mark Tritton as part of a leadership shakeup after the home goods retailer sharply missed Wall Street’s expectations on quarterly earnings and revenue.
Shares fell nearly 13% in premarket trading.
The company’s board said Sue Gove, an independent director on the board, would step down as interim chief executive.
“We must deliver better results,” she said in a news release. “Our shareholders, partners, customers and partners all expect more.”
Based on Refinitiv data, analysts were forecasting how the retailer fared for the three-month period ended May 28:
- Loss per share: $2.83 versus $1.39 expected
- Revenue: $1.46 billion versus $1.51 billion expected
The company’s net loss rose to $358 million, or $4.49 per share, from $51 million, or 48 cents per share, a year ago. The company’s net loss on an adjusted basis was $2.83 per share. According to Refinitiv, that was higher than analysts expected at $1.39.
Sales fell to $1.46 billion from $1.95 billion a year ago. This was lower than the estimate of $1.51 billion.
Bed baths have been under pressure from activist investor Ryan Cohen, chairman GameStop and founder of Chevy, Earlier this year, Cohen’s firm, RC Ventures, Disclosed 10% stake in the company, Cohen called for sweeping changes, criticized the high salaries of top executives and urged the sale or spinoff of the company’s baby gear series, BuyBuy Baby.
bed bath and cohen An agreement was reached at the end of March, The retailer agreed to add new independent directors to its board and look into options for the BuyBuy Baby chain.
But the challenges haven’t given up for the home goods retailer.
Shares of the company are down 55% so far this year and hit a 52-week low earlier this month. On Tuesday, the company’s shares closed down more than 3% at $6.53.
This story is developing. Please check back for updates.