- Bed Bath & Beyond says it remains open to selling its baby goods brand, Buybuy Baby.
- Interim CEO Sue Gove: “Interest exists” for the division.
- Activist investor Ryan Cohen has urged for a split or selloff of the company’s baby gear brand.
Bed Bath & Beyond said Wednesday it remained open to selling its baby goods brand, Buybuy Baby.
On a discussion with analysts, interim CEO Sue Gove said, “The business is very desirable, and we’re not alone in appreciating its potential.” “Interest exists,”
The parent firm is currently focusing on sales, she said. This involves updating the division’s website, app, and birth registry.
The baby gear chain participates in Welcome Rewards. This month’s rollout began. It lets shoppers earn and redeem points at Bed Bath & Beyond, Buybuy Baby, and Harmon Face Values.
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Buybuy Baby is at the centre of a dispute between Home Depot and activist investor Ryan Cohen. Cohen said in March that the baby gear brand may be worth several billion dollars and urged for a split or selloff. Later, he reached a truce with the corporation after it agreed to add new board members and explore future alternatives.
The Wall Street Journal reported in April that Bed Bath was fielding bids for the division. The corporation didn’t comment then.
The baby gear retailer has been one of Bed Bath’s bright spots while consumer traffic and revenues have decreased. In the holiday quarter, Bed Bath & Beyond same-store sales fell 15%, but Buybuy Baby’s rose low single digits.
The most recent three-month period didn’t follow this trend. Same-store sales at Buybuy Baby decreased by the mid-teens.
Harriet Edelman, the board’s independent chair, said a committee is working with strategic and financial consultants on Buybuy Baby’s future.
Buybuy Baby has a good market position and excellent demographics, she told analysts.
Bed Bath & Beyond sold Christmas Tree Shops, Cost Plus World Market, PersonalizationMall.com, and One Kings Lane in the past two years.
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