Bed Bath & Beyond (NASDAQ:BBBY) said Wednesday that it is replacing CEO Mark Tritton as part of a leadership shakeup as the retailer’s quarterly sales and earnings sharply missed Wall Street expectations.
Sue Gove, an independent director on the board, will step in as interim chief executive, the company said. It said she will focus on reversing recent results, addressing supply chain and inventory issues and strengthening the company’s balance sheet.
“I step into this role keenly aware of the macro-economic environment,” Gove said in a statement, citing steep inflation and changes in buying habits.
Still, she said the company needs to improve its performance and that its first quarter results are “not up to our expectations.” Bed Bath & Beyond said it expects same-store sales to recover in the second half of the fiscal year, but did not provide a specific forecast.
The home goods retailer will also get a new chief merchandising officer. Mara Sirhal, who most recently served as general merchandise manager of health, beauty and consumables, will replace Joe Hartsig, who is leaving the company.
The company’s net loss widened to $358 million, or $4.49 per share, from $51 million, or 48 cents per share, a year earlier. On an adjusted basis, the company’s net loss was $2.83 per share. That was more than the $1.39 that analysts expected.
Sales fell to $1.46 billion from $1.95 billion a year earlier. Wall Street had expected sales of $1.51 billion.
BBBY Shares plummeted $1.43, or 21.9%, to $5.10 in early Wednesday trading.
