Ann Yerger is among the directors of collapsing Bed Bath & Beyond Inc. (NASDAQ: BBBY). She is among the few people who can influence the direction of the retailer, which could collapse as early as next year. She is also part of the group that put new CEO Sue Gove into her job.
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Yerger is not only one of the retailer’s directors. According to the company’s investor relations operations, she “has dedicated her career to the advancement of corporate governance and investor protection initiatives.” Bed Bath & Beyond investors have not been served very well.
The company has a strong holiday sales season to survive into 2023. The evidence is that will not happen. It has closed over 18% of its stores and laid off hundreds of people. Is it any wonder? The retailer’s financial results are in shambles. Revenue dropped 28% in the most recently reported quarter to $1.4 billion. This is a worse slide than the one at J.C. Penney before it disintegrated. Bed Bath & Beyond lost $366 million. The retailer said same-store sales would drop 20% for the fiscal year. Perhaps it will close enough stores to mitigate that.
Gove said at the time of the release, “Our results for the second quarter came in as previously expected and announced. While our sales and profit results do not yet reflect the strategic and financial actions we have initiated to change our performance, they do demonstrate sequential progress in several key areas.” If she calls this progress, what must a lack of progress look like?
The company’s stock has entered penny stock territory recently. It is down 70% this year to just above $4. Wall Street has completely abandoned the chances of recovery.
Among Bed Bath & Beyond’s problems is its shrinking store count. While this may save a modest sum, for the time being, a smaller store count means some consumers will find it harder to find a store close to them. The inconvenience has helped ruin other retailers, like Sears and Kmart.
Ann Yerger, please save Bed Bath & Beyond’s shareholders.
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