These aren't numbers that could be considered a smashing success, even if Tritton's turnaround plans appear to be working. The company's core operation has yielded $46 million worth of cash flow for the six-month stretch in question, on sales of just a little less than $4 billion. Operating cash flow is positive for the timeframe in question, but not impressively so. Although the company fares far better in the latter half of the year due to holiday shopping, through the first six months of the fiscal year ending in August, Bed Bath & Beyond has lost $124 million. The retailer is still rebuilding itself in an environment that's been altered by the pandemic, after all, and crimped by global supply chain woes. Still, another $300 million being committed to a stock repurchase program? That's a tough idea for some investors to digest. Most of that gain has since been given back, though it was still up roughly 15% by Wednesday's close, so clearly, some shareholders are celebrating the developments.
Share prices soared more than 90% in Tuesday's after-hours trading on the news, further buoyed by reports that the retailer will soon be working with Kroger as a sales partner, and at the same time will open up its e-commerce platform to more third-party brands. Now CEO Mark Tritton wants to expand this year's buyback earmark from $325 million to $625 million, finishing up the effort as a result. Indeed, the company reported on Tuesday that $600 million of these buybacks had already been completed through the second quarter of this year, leaving only another $400 million to be done. The original plan was to wrap up these repurchases before the end of fiscal 2023 (ending in early 2024). On the off-chance you're reading this and haven't heard, Bed Bath & Beyond's $1 billion stock-repurchase authorization is so ahead of schedule that it should be completed before the end of this fiscal year. Arnal made over $3 million in 2021 between salary and stock compensations.Image source: Getty Images. The class-action suit sits in stark contrast to Arnal, who reportedly sold around $1 million worth of shares in mid-August as his alleged pump-and-dump scheme was reaching its zenith.
The company also announced it would be closing over 150 namesake stores and layoff over 20% of its workforce. 23 in Washington, DC, federal court, alleges that the scheme also involved “a classic attempt to spark a gamma squeeze.”Īrnal’s death comes at a time the lawsuit, stemming from a plaintiff’s argument that she bought over 8,000 shares of BBY between March and August of this year, has expanded to include clients whose total investments within that time frame exceeded $1.2 billion. Gustavo Arnal, who was the chief financial officer of BBB, is among the defendants named in a class-action suit that accuses him, founder Ryan Cohen and others of artificially inflating the troubled housewares giant’s share price. Bed Bath & Beyond’s Chief Financial Officer Gustavo Arnal was identified by police as the man who jumped to his death this past weekend.Ī Bed Bath & Beyond exec was facing a $1.2 billion “pump-and-dump” stock-fraud suit when he apparently leaped to his death from his swank 18th-floor apartment in Lower Manhattan last week. A corporate executive staring down a more than $1 billion class-action lawsuit for allegedly artificially inflating stock prices appears to have leapt to his death from a ritzy, iconic New York City building.
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