Shares of big-box retailer Bed Bath & Beyond Inc. (BBBY, Financial) surged more than 20% in extended trading on Wednesday after the company announced it selected Mark Tritton to be its new president and CEO.
Currently the executive vice president and chief merchandising officer at Target Corp. (TGT, Financial), Tritton played a key role in the company’s turnaround, spearheading the transformation of its retail model to become relevant with consumers and position it for long-term profitability. He has also held positions at Nordstrom (JWN, Financial), VF Corp.’s (VFC, Financial) Timberland and Nike (NKE, Financial).
The Union, New Jersey-based company, which sells a variety of furniture and home goods, has been struggling for the past several years as well. As illustrated in the chart below, while Bed Bath & Beyond’s revenue has been relatively stagnant over the last five years, its net income declined from $1.03 billion in 2013 to $424.8 million in 2018.
As such, Bed Bath & Beyond hopes Tritton will successfully guide it through its own transformation, which includes improving the omni-channel experience for customers, enhancing the quality and variety of merchandise and streamlining its cost structure and asset base.
In a statement, Chairman Patrick Gaston praised Tritton, saying he has “one of the most impressive resumes in the business.”
“Mark's ability to redefine the retail experience and drive growth at some of the world's most successful retailers and brands makes him uniquely equipped to lead Bed Bath & Beyond during this critical time in our evolution,” he said. “As an integral contributor to Target's impressive transformation, we will benefit from his vision, leadership and creativity to successfully transform our business."
Tritton also expressed his enthusiasm for his new role and the “immense opportunity” Bed Bath & Beyond has as “one of the most recognizable and best loved retailers in the country today.”
“The foundation of the company's transformation has been set and I'm excited at the chance to apply my industry experience and expertise to build an even better business for customers, associates and shareholders,” he added. “I look forward to working together with all associates and the Board of Directors to achieve our ambitious vision for the future of Bed Bath & Beyond."
Tritton’s first day is Nov. 4, when he will replace Interim CEO Mary Winston. She will remain a member of Bed Bath & Beyond’s board.
The retailer’s rally carried over into Thursday morning trading. With a market cap of $1.56 billion, Bed Bath & Beyond shares were up 23.59% at $12.29. GuruFocus estimates the stock has tumbled 15% year to date.
Disclosure: No positions.
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