Bed Bath & Beyond says it’s still open to selling its Buybuy Baby division

As Bed Bath & Beyond shakes up its management suite and ousts its CEO, the retailer mentioned Wednesday it stays open to one other massive change: A possible sale of its child gear chain, Buybuy Baby.

"The business is a very attractive business, and we're not alone in appreciating its value," interim CEO Sue Gove mentioned on a name with analysts when requested if a sale was off the desk. "We know there is interest."

For now, she mentioned, the mum or dad firm is targeted on methods to drive gross sales. That consists of bettering the division's web site and app and attracting extra consumers to its child registry.

The child gear chain is a part of a brand new loyalty program, Welcome Rewards, too. That program started rolling out earlier this month. It permits consumers to earn and redeem factors when purchasing on-line or in shops at any of the corporate's three banners: Bed Bath & Beyond, Buybuy Baby and private care model Harmon Face Values.

Buybuy Baby has been a focus in a contentious battle between the house items retailer and activist investor Ryan Cohen. In March, Cohen pointed to the infant gear banner as probably the most beneficial items of the corporate, arguing it may very well be price a number of billion {dollars}, and pushed for a derivative or selloff. He later got here to a truce with the corporate, after it agreed to add new board members and conduct a strategic evaluate of Buybuy Baby's future choices.

Bed Bath's inventory jumped in April on a report by The Wall Street Journal that the corporate was fielding curiosity for the division. At the time, the corporate didn’t reply to requests for remark.

The child gear retailer has been considered one of Bed Bath's vibrant spots, notably as buyer site visitors and gross sales have dropped at its namesake banner. In the vacation quarter, for instance, same-store gross sales for Bed Bath & Beyond shops declined 15% — however Buybuy Baby's same-store gross sales grew by low single digits.

That development didn't maintain up in the latest three-month interval, nonetheless. Buybuy Baby's same-store gross sales fell by the mid single-digits.

Harriet Edelman, who leads the board of administrators as its unbiased chair, mentioned Wednesday a committee of board members are working carefully with strategic and monetary advisors because it considers Buybuy Baby's future.

On the decision with analysts, she described Buybuy Baby as "a highly relevant banner with a strong market position and favorable demographics."

Bed Bath & Beyond over the previous two years has bought off different items of its enterprise, together with Christmas Tree Shops, Cost Plus World Market, PersonalizationMall.com and One Kings Lane.

primarily based on website supplies www.cnbc.com

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