Bed Bath & Beyond Inc. CEO Mark Tritton has stepped down as part of an executive restructuring after the Union-based home goods retailer reported another quarter of weak sales.
Bed Bath & Beyond said it posted an adjusted loss for the three months ending on May 28, the group’s fiscal first quarter, of $4.49 per share on revenues of $1.46 billion and a 27% slump in comparable sales.
Sue Gove, an independent director on the company’s board and chair of the board’s Strategy Committee, has been named interim CEO, replacing Tritton.
“After thorough consideration, the board determined that it was time for a change in leadership,” Harriet Edelman, independent chair of the Bed Bath & Beyond board, said. “Today’s actions address company performance, the macroeconomic conditions under which we are operating, and the expectations of the board on behalf of shareholders. We are committed to addressing the urgent issues that have been impacting sales, profitability and cash flow generation. We are confident Sue brings the right combination of industry experience and knowledge of Bed Bath & Beyond’s operations to lead the company, focus our resources and revise strategy, as appropriate.”
The company further announced that it has named Mara Sirhal as executive vice president and chief merchandising officer, replacing Joe Hartsig, who is leaving the company. Sirhal, who most recently served as Bed Bath & Beyond’s senior vice president and general manager for Harmon, as well as general merchandise manager of Health, Beauty & Consumables, will be responsible for driving the company’s omnichannel merchandising, planning and owned brands strategies, while also retaining her position as general manager for the Harmon retail banner.
Sirhal will report directly to Gove.
These changes reflect the decision of the company’s 13 independent members of the board of directors.
To support its work, the board has retained Berkeley Research Group, a leading retail advisory firm, to focus on cash, inventory and balance sheet optimization. In addition, Russell Reynolds, a nationally recognized search firm, has been retained to commence a search process for the permanent CEO role.