What happened
Shares of Bed Bath & Beyond (BBBY) were up 20.2% as of 2 p.m. EDT Thursday after the retail chain named former Target (TGT -0.28%) executive Mark Tritton as its new CEO.
So what
Tritton most recently worked as Target's executive vice president and chief merchandising officer, where he focused on shaping the company's omnichannel shopping experience; he also had stints at Nordstrom, Nike, and Timberland. Effective Nov. 4, he'll succeed interim CEO Mary Winston, who took over when previous CEO Steven Temares stepped down amid pressure from activist investors in May.
Image source: Getty Images.
"Mark's ability to redefine the retail experience and drive growth at some of the world's most successful retailers and brands makes him uniquely equipped to lead Bed Bath & Beyond during this critical time in our evolution," company chairman Patrick Gaston said. "As an integral contributor to Target's impressive transformation, we will benefit from his vision, leadership, and creativity to successfully transform our business."
Now what
The move shouldn't be terribly surprising. In fact, one analyst even upgraded Bed Bath & Beyond stock late last month partly in anticipation of the company naming a "well regarded and highly experienced" CEO.
But investors should also remember it'll take more than a single executive, however well regarded and experienced Tritton might be, to effectively implement a sustained turnaround. So while it's understandable to see shares rally in response -- considering the stock was down nearly 50% from its 52-week high as of Wednesday's close -- shareholders would do well to focus primarily on tangible improvements shown by Bed Bad & Beyond's underlying business in the coming quarters.
