Bed Bath & Beyond Crumbles on Earnings Miss, CEO Replacement
Shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) tumbled over 20% on Wednesday on the back of reporting fiscal first-quarter earnings results that missed expectations. The company also announced it replaced its CEO and other executive positions to focus on reversing recent results.
The Union, New Jersey-based home furnishings retailer reported a net loss of $4.49 per share, worse than the net loss of 48 cents per share from the prior-year quarter. The adjusted loss of $2.83 per share underperformed the Refinitiv consensus estimate of $1.73.
Company replaces CEO and other executives
Bed Bath & Beyond announced that Sue Gove, independent board director and chair of the boards strategy committee, will replace outgoing CEO Mark Tritton. The former Target Corp. (NYSE:TGT) executive also stepped down as a board member.
In addition, the company announced it named Mara Sirhal as executive vice president and chief merchandising officer.
Stock tumbles on earnings miss
Shares of Bed Bath & Beyond traded at an intraday low of $5, a new 52-week low and down approximately 23.43% from Tuesdays close of $6.53. The stock is significantly undervalued based on Tuesdays price-to-GF Value ratio of 0.36.
The home furnishings retailer has a GF Score of 63 out of 100 based on a profitability rank of 6 out of 10, a growth rank of 2 out of 10 and a rank of 4 out of 10 for financial strength, GF Value and momentum.
Bed Bath & Beyonds financial strength ranks 4 out of 10 on the back of debt-to-equity ratios underperforming more than 99% of global competitors despite having a strong Altman Z-Score of 4.04.
Chuck Royce (Trades, Portfolio)s Royce Investment Partners invested in 292,700 shares of Bed Bath & Beyond during the first quarter, giving the position 0.06% weight in its 13F equity portfolio.
This article first appeared on GuruFocus.
