Bed Bath & Beyond Clears Out Executive Inventory

Bed Bath & Beyond employee dancing with customer

Executive inventory shelves at Bed Bath & Beyond were a lot emptier during the holiday season. A half-dozen top executives left in an unusual shake-up for the struggling retailer, alerting optimistic stock option traders to an opportunity.

Chief executive Mark Tritton who served as Chief merchandising officer at Target Corporation, joined Bed Bath & Beyond, and on December 17th announced that five Executives would leave their roles, including the heads of merchandising, marketing, digital and legal. In addition, the chief brand officer resigned. The company has appointed interim leaders and has started a search to fill the vacant positions. 

What Went Wrong?

Employee and customer searching for a product in Bed Bath & Beyond


No changes were made in areas like supply chain, store operations and IT infrastructure. These are key functions that needed to be addressed. Trends haven’t improved much; however, the new CEO probably wants to show that decisive actions are being made ahead of the new year. Also, the company’s leadership will be able to point to pivotal steps it is taking when it has an initial opportunity to interact with the investment community in January. 

Stock option traders could argue the effect of concerns about tariffs and a disastrous earnings report under an interim CEO. There is a much-needed complete overhaul of the company’s stores from a floor-to-ceiling clutter-&-chaos-hoarder theme, requiring a treasure map. Let’s hope for polished, orderly displays with technology-savvy search-&-find fun Maxi screens with arrows cheerfully leading the way. 

What’s Right with Bed Bath & Beyond?

Balancing their existing expertise with fresh perspectives from, innovative leaders of change, will help them better anticipate and support customers in their shopping adventure. 

Bed Bath & Beyond stock is up 27% for the past month, attributable to the potential Mark Tritton brings with him, which should come during the earnings announcement and point to hundreds of millions of dollars of cost saving opportunities in the cost-of-goods-sold and reinvigorating traffic in stores, much to the approval of investors and option traders.

Barb’s Takeaway

Bed Bath & Beyond stock was soaring following news that senior leaders were leaving the company, but the timing of all this change suggested that the holidays weren’t as jolly as the home goods retailer would have liked.

 Bed Bath & Beyond analysts rate the stock neutral with an $11 price target. It’s unclear whether Mark Tritton can turn the company around. The company still has a lot of hard work to do!

Are You A Bull or Bear ??

Date December 27, 2019 — Stock:Bed Bath & Beyond — Share price closed @ $17.21

If you’re a Bullish Mom and think Bed Bath & Beyond will go up, try the February 21. 2020 Expiration Date – CALL $17.00 Bid;  and $16.00 Ask strike prices.  Premium is $ 53¢ debit to pay = Long Call Vertical Spread on  www.TDAmeritrade.com

On the other hand, Mom, if you think Bed Bath & Beyond is bearish and will go down, try the Expiration Date: February 21, 2020 – PUT $17.00 Ask;  and $16.00 Bid strike prices. Premium is 48¢ debit to pay = Long Put Vertical Spread on www.TastyWorks.com

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