Bed Bath & Beyond (NASDAQ:BBBY) said Thursday that it will soon share its turnaround strategy, as it burns through cash and tries to win back customers ahead of the holiday season.
The home goods retailer will have an investor update Wednesday morning, it said in a news release. Shares rose more than 5% in after-hours trading Thursday. They opened Friday up $6.96, or 7%, to $10.80.
Interim CEO Sue Gove said in the release that the company’s call will include “a preview of strategies and changes being implemented across the enterprise to deliver results for all stakeholders.”
Bed Bath & Beyond is on the clock to grow sales and convince investors that it has a path forward. It is looking for a new CEO after its board pushed out Mark Tritton earlier this summer.
It has lost market share to competitors, as it trimmed back its 20% coupons and introduced unfamiliar private brands. And its shares have plummeted, especially after activist investor Ryan Cohen sold off his entire stake in the company last week.
On top of that, the home goods sector is under pressure, lapping a period of unusually strong demand during the peak of the pandemic. It is also a discretionary category that is more vulnerable as shoppers spend more on food and other necessities because of inflation. Those cooling sales have left many blenders, toaster ovens and coffee makers on deep discount at big-box and specialty stores alike.
