It’s no wonder Mark Tritton has been making power moves only since taking over as CEO of Bed Bath and Beyond. The company just announced an earnings miss for the ages for its third quarter ended in early December.
Overall, BBB lost 38 cents per share, compared to an expected gain of 2 cents per share. If that wasn’t embarrassing enough, the company’s same-store sales dropped 8.3%, compared to an expected drop of only 5%. Go big or go home, amirite, Mark?
Worst of all, Tritton pulled future guidance for the remainder of the year which is the Wall Street equivalent of not wanting to share your test scores after your friends told you they got higher grades. But, the CEO vowed to come back in the spring with a plan. Hopefully, it’s not just more coupons…
The news sent the country’s largest purveyor of Squatty Pottys down as much as 25% before paring losses to 9% in the extended session.
Boots weren’t made for walkin’
Walgreens had a rough day too, as quarterly earnings dropped 25% and revenue came in lower than expected for its fiscal Q1. The drug store chain cited weak prescription volumes thanks to competition from online drug companies, and sh*thead millennials ordering goods like shampoo and deodorant online.
Unlike BBB however, Walgreens kept its outlook in line with previous guidance.
Walgreens’ stock jumped in November after news broke that KKR was considering making a $70B offer. Unsurprisingly news of the largest leveraged buyout of all time got investors all hot and bothered. Unfortunately for CVS Lite, the deal talks have stalled as financing appears to be hard to come by.
Without a deal, Walgreens’ shares have sputtered and the news today sent the stock down another 6% to $55.83.
The bottom line…
Retailing is about as easy as pimping (read: it ain’t).
BBB and Walgreens both face different challenges but a common enemy: the interwebs. Looking at you, Amazon.