New CEO Sends Bed Bath & Beyond Shares Up 20%, but Is He Really the Answer?
If the stock's 20% jump following last Wednesday's announcement is any indication, investors are optimistic that the new Bed Bath & Beyond (NASDAQ: BBBY) CEO is the right person to rekindle growth. The beleaguered home goods retailer named now-former Target (NYSE: TGT) chief merchant Mark Tritton to the top spot, effective Nov. 4. Tritton gets much of the credit for taking Target's so-called "cheap chic" shtick from good to great after joining the company in 2016.
It's not a bad bet by the board of directors, nor an unreasonable assumption by shareholders. But given Tritton's track record, the decision also suggests Bed Bath & Beyond may have a particular new strategic initiative in mind. Perhaps above all else, Tritton has proven he's great at cultivating private-label products, which is enormously more profitable than selling goods made by third parties.
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Source Fool.com
