Why Bed Bath & Beyond Rose 6.9% Today

What happened

Shares of Bed Bath & Beyond (NASDAQ: BBBY) rose 7% on Wednesday as the market continued to look favorably on the changes the home goods retailer is making to its business.

Yesterday, there was another shake-up in its headquarters personnel, this time in the marketing department with the appointment of two new senior vice presidents — one coming over from Target, the other from Macy’s.

Bed Bath & Beyond also appointed three new creative agencies to help with marketing and communication.

Image source: Getty Images.

So what

The market is beginning to believe Bed Bath & Beyond can dig its way out of the deep hole it found itself in as CEO Mark Tritton has overhauled the executive suite, cast off all non-core businesses, and is focusing on the key brands of Bed Bath & Beyond: buybuyBaby and Harmon Face Value.

Now what

While the retailer’s recent earnings report was a little disappointing as it missed expectations, Bed Bath & Beyond’s digital sales nearly doubled for the period. The market’s initial reaction was to send the stock tumbling, but it seems there’s been a change of heart, and its shares have been steadily rising.

The stock of the home goods chain is up over 20% in 2021, and the appointment of a new marketing team is giving rise to the hope Bed Bath & Beyond can better communicate its value proposition to consumers and continue climbing back from the edge of the abyss.

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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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