In his daily “Stop Trading” segment on CNBC, Jim Cramer took a look at Bed Bath & Beyond (NASDAQ: BBBY).
The Transaction: On Tuesday, Bed Bath & Beyond announced plans to sell its Christmas tree store business of 80 stores, its linen business and a distribution center. The three non-core assets are expected to bring in $250 million in sales for the company.
The deal “accelerates the company’s transformation to drive shareholder value creation,” according to the company.
“Today’s announcement builds on the purposeful steps we have made throughout the year to simplify our portfolio, unlock capital and create clear strategic focus to accelerate our plans to build our authority in the Home, Baby, Beauty and Wellness markets,” said CEO Mark Tritton.
Related Link: Bed Bath & Beyond Rallies 35% On Q2 Results: 3 Analyst Takes On The Print
Cramer’s Take: The discussion centered on Bed Bath & Beyond selling its Christmas tree and linens businesses. Cramer loves that Bed Bath & Beyond is changing its merchandise and getting rid of underperforming units.
“I don’t know how he talks someone into it,” Cramer said of Tritton.
Bed Bath & Beyond hired Tritton in late 2019 after he spent time at Target (NYSE: TGT) as the Chief Marketing Officer.
“Mark Tritton is a genius,” said Cramer.
BBBY Price Action: Shares of Bed Bath & Beyond are up 8% Wednesday to $23.83. Shares are up 320% over the last six months as the company transforms its business model.
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