Shares of home goods-focused e-commerce firm Beyond (NASDAQ:BYON) moved up on Monday following a new transition. Marcus Lemonis, CEO of Camping World (NYSE:CWH) — who achieved popularity on the reality television program “The Profit” — will take over as Chairman of the Board. While BYON stock recently took on the identity of Bed Bath & Beyond acquisition, it faces a challenging retail environment.
According to the accompanying press release, Lemonis will replace Allison Abraham, who notified the board of directors of her decision to retire. Per the statement dated Dec. 11, the resignation is effective immediately. Further, the decision centered on personal reasons, clarifying that it’s not the result of any dispute or disagreement. Abraham stated the following:
“I thank the Board, management, and rest of the Beyond family for their support over the years. It has been an honor to work for the Company and represent our shareholders for more than two decades. Marcus has been an exceptional addition to the Board since joining in October and I believe the Company and the Board will benefit from his leadership during this next phase of growth.”
In response, Lemonis expressed thanks to Abraham for “her years of invaluable service to the Company.” As well, the new chairman committed to executing Beyond’s long-term strategy to enhance shareholder value.
BYON Stock Moves on Vision But Obstacles Remain
To be sure, a major source of encouragement for Beyond shareholders is that Lemonis isn’t merely spouting empty rhetoric. As previously covered by InvestorPlace, Lemonis has been busy acquiring a significant amount of BYON stock. Per data from Fintel, his latest acquisition occurred on Nov. 14, picking up 5,940 shares at a unit price of $16.80.
Further, the company — which previously ran under the name Overstock.com — rebranded itself as Beyond in early November. In doing so, management aims to address the occasional confusion that the prior name imposed on some consumers and vendors. Moving forward, the cultural association with Bed Bath & Beyond should benefit demand, thus theoretically boding well for BYND stock.
Nevertheless, challenges remain. In particular, Beyond posted lackluster results for its third quarter. Conspicuously, net revenue declined 19% against the year-ago period, worse than analysts’ consensus view. Further, the e-commerce specialist incurred a net loss of $63 million, which while beating expectations still represented a heavy dose of crimson.
In fairness, the year-over-year comparisons stem from results prior to the Bed Bath & Beyond acquisition. Nevertheless, worrying metrics — such as the erosion of gross margin to 18.74% in Q3 from 23.35% one year prior — poses significant risks, especially for a discount-oriented retailer.
At the same time, BYON stock continues to attract investor interest. Just in the trailing month alone, shares popped up 57%. Therefore, the sky may be the limit if Beyond starts making good on the financials.
Why It Matters
Although retail investors don’t seem to mind, analysts lack conviction regarding BYON stock, pegging it a consensus hold. This assessment breaks down as two buys, six holds and zero sells. What’s more, the average price target sits at $21.40, implying more than 9% downside risk.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
