Bed Bath & Beyond (NASDAQ: BBBY) reported disappointing earnings Wednesday and announced that it would also be replacing current CEO Mark Tritton. Shares have fallen over 23% amid the news.
The retailer reported an earnings loss of USD2.83 per share, compared to the expected loss of USD1.39 a share. Furthermore, revenue totaled USD1.46 Billion, lower than analysts anticipated USD1.5 Billion.
Sue Gove, who will be stepping into the role of Interim Chief Executive Officer stated, “I step into this role keenly aware of the macro-economic environment. In the quarter there was an acute shift in customer sentiment and, since then, pressures have materially escalated. This includes steep inflation and fluctuations in purchasing patterns, leading to significant dislocation in our sales and inventory that we will be working to actively resolve. The simple reality though is that our first quarter’s results are not up to our expectations, nor are they reflective of the Company’s true potential. The initiatives we are instituting today are just the first steps in putting our business on firm footing to drive our future success. I look forward to working with the Board, the management team, and our Associates to immediately address our supply chain challenges, market share recapture, inventory and cash optimization, and cost structure alignment.”