Bed Bath & Beyond extends its 462% rally after sale of Christmas Tree Shops for $250 million (BBBY)
By: Business Insider
October 14, 2020 at 12:10 PM EDT
Bed Bath & BeyondSummary List Placement
Those non-core assets include Christmas Tree Shops, Linen Holdings, and a Florence, New Jersey, distribution center.
The news sent shares up as much as 9% in Wednesday trades, helping extend a 462% rally from their COVID-19 pandemic low reached in early April to yesterday's close.
Bed Bath & Beyond has been in turnaround mode and in late 2019 hired Mark Tritton as its CEO. Tritton, a former Target executive, has shifted Bed Bath & Beyond's focus to digital sales, including ecommerce, buy online and pick-up in store, and curbside pickup options.
Based on its latest earnings report, the strategy shift seems to be working, with Bed Bath & Beyond reporting an 89% surge in its digital sales channel.
The transaction "builds on the purposeful steps we have made throughout the year to simplify our portfolio, unlock capital and create clear strategic focus to accelerate our plans to build our authority in the Home, Baby, Beauty and Wellness markets," Tritton explained.
The 80 brick-and-mortar Christmas Tree Shops and a Massachussetts-based distribution center will be managed and operated by their new owner, Handil Holdings LLC.
Tritton said the company will continue to optimize its portfolio to increase its financial strength and enhance shareholder value, which could potentially include the sale of additional non-core assets.
The non-core asset sales are expected to close in October and November of this year.
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