The besieged company announced numerous changes to its leadership Wednesday, including the replacement of Tritton. During that time, Bed Bath and Beyond selected Sue Grove, an independent director on the company’s board, as CEO until a permanent person was found for the position.
“We have to deliver improved results,” Grove said in a statement. “Top-level execution, careful cost management, higher supply chain reliability, prudent capital expenditures, stronger balance sheets, and strong digital capabilities will all be important to with our success.”
Tritton’s efforts failed to mask the company’s deep-seated problems. On Wednesday, the chain reported significantly lower-than-expected earnings for the past quarter, and brand sales fell 27% year-over-year.
That sent the company’s stock down as much as 20% during early trading. It is now down about 65% for the year.
Neil Saunders, chief executive officer of GlobalData, said in an analyst note.
“In our one-sided view, this is a cosmetic reinvention – copied from Target – with very little substance behind it,” says Saunders. “It’s a little surprising that it disbanded so quickly.”
He added that the company was “going to the platform and changing management is the only way to restore credibility to investors.”
On Tuesday, a new report from Bank of America painted a bleak picture for the retailer, claiming that the company cut air conditioning to quickly lower costs to make up for a drop in sales. sell. Bed Bath and Beyond told CNN Business that any changes to the temperature guidelines in the store did not come from the company.
“We have been contacted about this report, and it is clear that none of the Bed Bath & Beyond stores have been directed to regulate their air conditioners and there have been no changes to company policy regarding the use of air conditioners. use utilities,” a representative said.
However, analysts at Bank of America who have conducted store visits report growing concerns, including meaningful cuts in labor hours, shrinking utilities, reduced store hours and canceled remodeling projects. The rewards programs have also been scaled back and replaced. Analysts expect Bed Bath and Beyond management to announce the closure of more stores soon and the discontinuation of Buy Buy Baby stores.
Other factors plaguing the company include the resignation of two key financial executives in recent months, chief accounting officer John Barresi who resigned in May, and Heather Plutino, a senior vice president. Senior in financial planning and analysis and commercial finance also left the company.
– Nicole Goodkind of CNN Business contributed to this report.