Shares of Bed Bath & Beyond (NASDAQ: BBBY) plummeted 32.7% this week compared to where they closed last Friday, according to data from S&P Global Market Intelligence, after posting a severe loss for the fiscal first quarter and announcing president and CEO Mark Tritton was no longer associated with the retailer. The home goods retailer's independent chair Harriet Edelman said in a statement, "After thorough consideration, the Board determined that it was time for a change in leadership." Tritton was brought in from Target to lead Bed Bath & Beyond's turnaround in 2019 and kicked off his tenure with some dramatic moves, including making a sweep of the executive suite and leading the retailer's sales of many of its various side businesses over the years such as Cost Plus World Market, Christmas Tree Shops, One Kings Lane, and PersonalizationMall.com.
After it published quarterly earnings Wednesday that missed on both the top and bottom lines, the company was hit by a clutch of analyst price target cuts in the ensuing days. As if that wasn't concerning enough, on the same day, the company announced that CEO Mark Tritton was stepping down from his position. Since then, a score of analysts have understandably reduced their price targets on Bed Bath & Beyond stock.
Its revenue plunged 25% year over year to $1.46 billion, which missed analysts' expectations by $50 million, as its comparable-store sales tumbled 23%. Its net loss widened from $51 million to $358 million on a GAAP (generally accepted accounting principles) basis. On a non-GAAP basis, it posted a net loss of $225 million, compared to a net profit of $5 million a year earlier, and its net loss of $2.83 per share broadly missed analysts' estimates by $1.44.