- The turnaround at Bed Bath & Beyond continued on Tuesday after the company announced the sale of Christmas Tree Shops for approximately $250 million.
- The 462% rally in its shares this year extended on Wednesday, with the stock surging as much as 9% on the non-core asset divestiture.
- Bed Bath & Beyond has been in turnaround mode since it brought in a new management team led by former Target executive Mark Tritton in 2019.
- Visit Business Insider’s homepage for more stories.
Bed Bath & Beyond extended its eye-popping rally on Wednesday after it announced on Tuesday it would sell non-core assets for approximately $250 million.
Those non-core assets include Christmas Tree Shops, Linen Holdings, and a Florence, New Jersey, distribution center.
The news sent shares up as much as 9% in Wednesday trades, helping extend a 462% rally from their COVID-19 pandemic low reached in early April to yesterday’s close.
Bed Bath & Beyond has been in turnaround mode and in late 2019 hired Mark Tritton as its CEO. Tritton, a former Target executive, has shifted Bed Bath & Beyond’s focus to digital sales, including ecommerce, buy online and pick-up in store, and curbside pickup options.
Based on its latest earnings report, the strategy shift seems to be working, with Bed Bath & Beyond reporting an 89% surge in its digital sales channel.
The transaction "builds on the purposeful steps we have made throughout the year to simplify our portfolio, unlock capital and create clear strategic focus to accelerate our plans to build our authority in the Home, Baby, Beauty and Wellness markets," Tritton explained.
The 80 brick-and-mortar Christmas Tree Shops and a Massachussetts-based distribution center will be managed and operated by their new owner, Handil Holdings LLC.
Tritton said the company will continue to optimize its portfolio to increase its financial strength and enhance shareholder value, which could potentially include the sale of additional non-core assets.
The non-core asset sales are expected to close in October and November of this year.
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