Bed Bath & Beyond Names Target Executive as Its New CEO – Barron’s

Mark Kauzlarich/Bloomberg

Bed Bath & Beyond has a new CEO and the stock is soaring. Shares were up $1.47, or almost 15%, in after-hours trading, to $11.41.

The home goods retailer named former Target (ticker: TGT) executive Mark Tritton to its top spot.

“We are thrilled to announce a president and CEO with one of the most impressive résumés in the business,” Patrick Gaston, Bed Bath & Beyond’s chairman, said in the company’s statement. “Mark’s ability to redefine the retail experience and drive growth at some of the world’s most successful retailers and brands makes him uniquely equipped to lead Bed Bath & Beyond during this critical time in our evolution.”

Before joining Target in 2016, Tritton was an executive at Nordstrom (JWN).

The move was, in part, catalyzed by activist investors pushing for change at the struggling retailer. Bed Bath & Beyond (BBBY) shares are down 12% year to date. What’s worse, the retailer’s stock has lost about 37% a year on average over the past three years, far worse than the 20% average annual gain of the retail components in the S&P 500 and the 16% average annual return of the Dow Jones Industrial Average over the same span.

“We believe CEO Steven Temares must be terminated as soon as possible,” wrote a group of activist investors in April, expressing displeasure over the company’s own plan to reform its board of directors.

The battle culminated in Temares leaving in May, replaced by Mary Winston on an interim basis. Now, Tritton replaces Winston.

Tritton now has the difficult task of cutting costs, improving inventory turnover and reversing negative sales trends. Comparable-store sales have fallen for three straight fiscal years at the company.

Write to Al Root at allen.root@dowjones.com

Source : Google News

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