Struggling home goods chain Bed Bath & Beyond – which reportedly cut air-conditioning at its stores to save money – on Wednesday laid off its chief executive.
CEO Mark Tritton was fired after the company produced poor sales results for two consecutive quarters at its 771 stores in the US.
“After careful consideration, the board determined it is time for a change in leadership,” director Harriet Edelman said in a statement. “We are committed to addressing the immediate issues affecting sales, profitability and cash flow.”
Bed Bath & Beyond’s first-quarter sales fell 25% compared to a year ago and its loss widened 600% to $358 million, the union, NJ-based company said.
Shares of the company are down more than 80% year over year, and were down 20% since Wednesday’s announcement, hovering around $5.
Independent board member Sue Gove will take over as interim CEO. Tritton held the top post for two and a half years.
Tritton, who joined the retailer from Target, blamed the company’s struggles on supply chain hassles that limited the amount of merchandise he could sell.
The company said that during the critical holiday period last year, stores were missing many of their 200 best-selling items, losing $100 million in sales.
According to a report from Bank of America, it has recently started cutting costs, including turning off air conditioning in its stores, reducing staff hours, and in July stores will open at 11 a.m. instead of 10 a.m. .
The company said in a statement that the temperature in its stores is not the result of any corporate policy or directive.
“There has been no corporate policy change regarding the use of the utility,” the company said in a statement.
Bank of America’s report was based on investment bank analysts’ visits to stores across the country.
Bed Bath & Beyond also hired a new chief merchandising officer, Mara Sarhal, to replace Joe Hertsig, who is leaving the company. Sarhal joined the company in 2021 as a Senior Vice President.
The company has recently faced pressure from active investors, namely billionaire Chewy.com founder Ryan Cohen, who urged the company to sell itself and strengthen its board. The company added three new directors this year as a result of Cohen’s activism.
