"This frenzied move has been driven by non-fundamentally focused market participants," Baird analyst Justin Kleber wrote in a note to clients Tuesday. The firm has placed an underperform rating and $4 price target on the retailer's stock despite a rally fueled by retail investors Monday.

Bed Bath & Beyond shares are down more than 36% year to date. The downgrade comes as co-founder and GameStop chairman Ryan Cohen has been working to turn the company around. In June, the company announced that former Bed Bath &s; Beyond CEO Mark Tritton would be exiting his role.

Under Tritton's leadership, Bed Bath & Beyond remodeled stores, closed underperforming stores and introduced a private label line. However, the company saw its net loss widen and sales fall during the first quarter of 2022 amid soaring inflation, a rapid shift in consumer spending patterns and declining demand in its Home sector.

BBBY also confirmed to FOX Business it would discontinue the Wild Sage-owned brand of home goods the company launched in June, 2021. Independent board director Sue Gove is serving as interim CEO as the company searches for a permanent replacement. "Supply chain disruptions have exposed BBBY’s antiquated infrastructure and wreaked havoc on the business," Kleber said.

Gove has said Bed Bath & Beyond would focus on driving traffic to its stores and digital platforms in the near term. In addition, Mara Sirhal and Laura Crossen have been tapped as chief merchandising officer and accounting officer, respectively. Gove said the company would focus  on driving traffic to its stores and digital platforms.
Posted by
Tap to Copy the Short Url to This Post: 
One-Stop Business News backed by Mark Cuban. Free to Use →