Bed Bath & Beyond surges more than 20% after naming former Target executive as CEO
- Bed Bath & Beyond announced on Wednesday that Target's chief merchant Mark Tritton will be its new CEO.
- Shares gained more than 20% in after-hours trading on the news.
- Tritton brings 30 years of retail experience.
- Watch Bed Bath & Beyond trade live on Markets Insider.
Investors look to be thrilled with Bed Bath & Beyond's pick for CEO.
Shares of Bed Bath & Beyond soared more than 20% in after-hours trading after the company announced that Mark Tritton will be its CEO and president starting November 4, 2019. He will succeed interim CEO Mary Winston.Tritton was previously executive vice president and chief merchandising officer at Target, a major competitor. He brings more than 30 years of retail experience to the top role at Bed Bath and Beyond, and in addition to his time at Target has held positions at Nordstrom, Timberland, and Nike.
"Mark's ability to re-define 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," Patrick Gaston, chairman of Bed Bath & Beyond's board, said in a press release.
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He continued: "As an integral contributor to Target's impressive transformation, we will benefit from his vision, leadership, and creativity to successfully transform our business."
The announcement comes just a week after the company reported its second-quarter earnings. Even though the report topped analyst estimates on earnings per share, it fell short on the important metrics of revenue and same store sales. The earnings release sent shares down as much as 2.6%
Bed Bath & Beyond had declined 12% year-to-date through Wednesday's close.