Bed Bath & Beyond is pledging to transform its business and make changes to its board of directors after a group of activist investors pressured the retailer.
Three activist funds last month said they built a roughly 5% stake in Bed Bath & Beyond. The activists nominated a full suite of 16 new board members and planned to recruit a new CEO.
On Wednesday, Bed Bath & Beyond said it would nominate a new lead director to its board and revamp its corporate governance structure. It plans to announce additional changes to the board in the future.
That news came as the company reported earnings. During its most recent quarter ending in March, Bed Bath & Beyond's sales at stores open at least a year fell 1.4% compared with the year earlier. The retailer lost money during the quarter, too.
The company said it would continue to reduce clutter from its stores, build out its private-label brands and introduce lower-priced products.
Shares of Bed Bath & Beyond (BBBY) fell more than 7% during after-hours trading Wednesday.