Bed Bath & Beyond Inc. stock rallied Wednesday after the retailer said it would launch three more house brands in the coming weeks with an eye toward younger shoppers and with plenty of time for back-to-school shopping and other busy shopping seasons.
Bed Bath & Beyond shares
rose 62% to end at $44.19, their highest close since Jan. 27 and largest one-day increase on record.
The house brands are a “modern” line of kitchen and dining wares; a “youthful” collection of housewares; and a new line of storage and organization, the retailer said. The company announced several other house brands earlier this year.
With the most recent launch in the coming weeks, the company will have launched six store brands in five months, “which is ahead of its previously announced 6-month timetable and in advance of the important back-to-college shopping season,” Bed Bath & Beyond said.
The house-brand strategy is a “key component” of the retailer’s three-year transformation plan, which got a boost from a pandemic-fueled focus on shopping for the home and included runaway sales of bread machines and vacuum cleaners.
Chief Executive Mark Tritton moved to Bed Bath & Beyond’s top post in 2019 from Target Corp.
where he was chief merchandise officer and also focused on house brands as a way to boost sales and profits.
Bed Bath & Beyond stock has gained 117% this year and quintupled in the past 12 months, compared with gains of 12% and 37% for the S&P 500
index in these same periods.