BBBY stock is in the red today after Bed Bath & Beyond Inc (NASDAQ:BBBY) reported a data breach in which email and password credentials were obtained by an outside source. However, no payment details were accessed by the hacker, and less than 1% of online customer accounts were affected.
Breach to Have Minimal Impact on Consumers
According to a filing with the US Securities and Exchanges Commission on Tuesday, the company “discovered that a third party acquired email and password information from a source outside of the company’s systems which was used to access … customers’ online accounts.” The homeware retailer’s website receives about 4 million visitors per month, and it expected that its cyber incident insurance policy will cover the minimal damage costs of the incident. BBBY shares are trading down at $14.19 following the breach.
BBBY Stock Gains as Turnaround Efforts Bear Fruit
BBBY stock had tanked as much as 60% earlier this year as the company floundered amid a myriad of issues. Problems such as excessive inventory, an inefficient supply chain, and a clunky brand portfolio had weighed on the BBBY’s books and led to poor quarterly performances over a prolonged period of time. The issues had been allowed to fester for so long that BBBY shares lost over 90% of its value in the last five years.
CEO Steven Tamares was dismissed earlier in the year, to be replaced by Target’s Mark Tritton on November 4. Bed Bath & Beyond launched an extensive turnaround campaign, bringing in experts Legion Partners, which have just overseen the strongest quarter in recent memory and led to an upward shift in BBBY stock.
Christopher S. Kiper, the activist investor spearheading the turnaround, said, “The business had produced declining returns and there were readily available fixes. We brought in a world-class consulting firm to validate the operational upside. In our view, Bed Bath & Beyond will flourish under new leadership. The recent pick of Mark Tritton, the former Chief Merchandising Officer at Target, has made us even more optimistic about the company’s long-term potential.”
BBBY stock has nearly doubled to $14.19 since mid-August as the company continues to excel in its turnaround efforts.
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