UPDATE: Bed Bath & Beyond unveils 3-year transformation plan and resumes share buybacks

/ / News

Bed Bath & Beyond Inc. shares fell 9% in premarket trade Wednesday, after the retailer unveiled a transformation program that aims to unlock potential and boost profitability. Union, New Jersey-based Bed Bath & Beyond told analysts at an investor day that it will follow a three-year roadmap to remodel stores, overhaul its supply chain and boost returns to shareholders. The company has launched a $225 million accelerated share buyback program. and is planning to buy back shares totaling up to $675 million over the next three years. The program will be funded by cash resources generated from the sale of certain non-core assets. The company suspended buybacks in March as part of actions taken to conserve cash during the pandemic. The retailer will spend $250 million to remodel 450 stores, will boost its private label offering and upgrade its technology. Shares have gained 39% in the year to date, while the S&P 500 has gained 5%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.