Bed Bath & Beyond Inc. (NASDAQ: BBBY) shares started the week with a gain after the company announced that long-time CEO Steven Temares is stepping down on Monday. A group of investors has been pushing for his departure and a shakeup of the furnishing retailer’s board.
The group, composed of Legion Partners Asset Management, Macellum Advisors GP and Ancora Advisors, had pressed the company since March, citing the company’s inability to grow sales and margins.
The retailer has struggled lately to keep pace with changing consumer tastes and shopping habits, reporting 1.1% growth in sales last year, compared with over 22% in 2003 when Temares took over as chief executive.
The company’s shares have lost nearly 80% in the past five years. However, the stock is actually up about 39% year to date.
Mary Winston, currently a board member, was named as interim CEO. The board has started a search for a permanent replacement.
The early gain was short-lived, however. Shares of Bed Bath & Beyond were last seen down 3% at $15.30, in a 52-week range of $10.46 to $21.45. The consensus price target is $17.87.