NASHVILLE, Tenn., Dec. 16, 2025 /PRNewswire/ -- The Brand House Collective, Inc. (Nasdaq: TBHC) ("Brand House Collective" or the "Company"), formerly Kirkland's, Inc., announced its financial results for the 13-week and 39-week periods ended November 1, 2025.
Amy Sullivan, CEO of Brand House Collective, said, "Our inventory optimization efforts are strategically supporting our store conversion program, creating space for expanded Bed Bath & Beyond assortments as we transform our retail footprint. The successful conversion of our Tennessee locations to the Bed Bath & Beyond Home format demonstrates the progress we're making in this evolution. Looking ahead, the pending merger with Bed Bath & Beyond will combine our complementary strengths and will enable us to build a powerful omnichannel platform for sustained growth. We are confident this combination will strengthen our comprehensive home retail offering, unlock meaningful operational and financial synergies, and deliver increased earnings power with enhanced long-term growth potential for all shareholders."
Third Quarter 2025 Financial Results
-- Net sales in the third quarter of 2025 were $103.5 million, compared to
$114.4 million in the prior year quarter, driven by a 7.4% decline in
consolidated comparable sales and a decline in store count of
approximately 6%. Consolidated comparable sales is inclusive of a
comparable store sales increase of 1.7% and e-commerce decline of 34.6%
compared to the third quarter of fiscal 2024.
-- Gross profit was $21.1 million, or 20.4% of net sales, compared to $32.1
million, or 28.1% of net sales in the prior year quarter. The decline is
primarily a result of a decline in merchandise margin and the deleverage
of store occupancy costs on lower sales. The decline in merchandise
margin was primarily due to liquidation activity to optimize inventory
ahead of expanding Bed Bath & Beyond assortments and incremental tariff
costs.
-- Operating expenses in the third quarter of 2025 were $23.1 million, or
22.3% of net sales, compared to $34.5 million, or 30.2% of net sales in
the prior year quarter. The reduction in expenses to prior year was
driven by reduced marketing spend and lower cost for self-insured
employee benefits, as well as a $10.0 million gain on the sale of the
Kirkland's brand to Beyond.
-- Net loss in the third quarter of 2025 was $3.7 million, or a loss of
$0.16 per diluted share, compared to $7.7 million, or a loss of $0.59 per
diluted share in the prior year quarter. Diluted weighted average shares
outstanding in the third quarter of 2025 were approximately 22.5 million
compared to 13.1 million in the prior year quarter, mainly due to Beyond
acquiring approximately 8.9 million shares of common stock in the
Company.
-- Adjusted net loss* in the third quarter of 2025 was $13.6 million, or an
adjusted loss of $0.61 per diluted share, compared to adjusted net loss
of $3.8 million, or an adjusted loss of $0.29 per diluted share in the
prior year quarter.
-- Adjusted EBITDA* in the third quarter of 2025 was a loss of $9.9 million
compared to income of $0.5 million in the prior year quarter.
-- During the period, the Company closed three Kirkland's Home stores and
converted 3 Kirkland's Home stores to Bed Bath & Beyond Home stores to
end the quarter with 303 Kirkland's Home stores and 3 Bed Bath & Beyond
Home stores.
Balance Sheet
-- As of November 1, 2025, inventory was $88.9 million compared to inventory
of $111.2 million as of November 2, 2024.
-- As of November 1, 2025, the Company had a cash balance of $6.5 million,
with $61.6 million of outstanding debt and $5.8 million in outstanding
letters of credit under its senior secured revolving credit facility, and
$13.7 million in debt to Beyond, a related party and 40% owner of the
Company. As of November 1, 2025, the Company had $1.0 million of
availability for borrowing under the revolving credit facility, after the
minimum required excess availability covenant.
-- As of December 15, 2025, the Company had $20.7 million of outstanding
debt and $5.8 million of outstanding letters of credit under its
revolving credit facility with $12.2 million of availability, after the
minimum required excess availability covenant, and $23.7 million in term
loans to Beyond with $20.0 million available from Beyond.
-- Availability under the Company's revolving credit facility fluctuates
largely based on eligible inventory levels, and as eligible inventory
increases in the second and third fiscal quarters in support of the
Company's back-half sales plans, the Company's borrowing capacity
increases correspondingly.
*Non-GAAP financial measures. Please see "Non-GAAP Financial Measures" and "Reconciliation of GAAP Net Income to Adjusted EBITDA" and "Reconciliation of GAAP Net Income to Adjusted Net Income" for more information.
Conference Call
Given the pending acquisition by Bed Bath & Beyond, Inc. the Company will not conduct an earnings call related to the Q3 results.
Contact: Investor Relations The Investor Relations Media The Brand House
Brand House Collective, ICR Collective, Inc.
Inc. Andrea Courtois Caitlin Churchill media@brandhouseco.com
1-615-872-4800 TBHC@icrinc.com
1-203-682-8200
About The Brand House Collective, Inc.
The Brand House Collective, Inc., formerly Kirkland's Inc., is a multi-brand merchandising, supply chain and retail operator, managing a portfolio of iconic home and family brands including Kirkland's Home and Bed Bath & Beyond Inc.'s Bed Bath & Beyond Home, Bed Bath & Beyond, buybuy Baby, and Overstock. Currently operating more than 300 stores across 35 states as well as e-commerce sites, www.kirklands.com and www.bedbathandbeyondhome.com, the Company offers distinctive brand experiences providing curated, high-quality product assortments for every room, every moment, and for every budget. More information can be found at www.kirklands.com.
Forward-Looking Statements
Except for historical information contained herein, certain statements in this release, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to the finalization of the Company's quarterly financial and accounting procedures. Forward-looking statements deal with potential future circumstances and developments and are, accordingly, forward-looking in nature. You are cautioned that such forward-looking statements, which may be identified by words such as "anticipate," "believe," "expect," "estimate," "intend," "plan," "seek," "may," "could," "strategy," and similar expressions, involve known and unknown risks and uncertainties, many of which are outside of the Company's control, which may cause the Company's actual results to differ materially from forecasted results. Those risks and uncertainties include, among other things, risks associated with the effect of the transactions entered into with Beyond, including the proposed merger with Beyond (the "Transactions") on the Company's business relationships; the timing and likelihood of, and any conditions or requirements imposed in connection with, obtaining required shareholder or regulatory approval of the proposed merger (and the risk that such approvals may result in the imposition of conditions that could adversely affect the expected benefits of the proposed merger); the timing and likelihood of receiving the required lender consent from Bank of America, N.A., which is subject to the refinancing or repayment of the Company's existing asset-based loan; delays in closing the proposed merger or the possibility of non-consummation of the proposed merger; the ability to successfully integrate the Company's business with Beyond following the closing of the proposed merger; operating results and business generally; unexpected costs, charges or expenses resulting from the Transactions; potential litigation relating to the Transactions that could be instituted against Beyond, the Company or their affiliates' respective directors, managers or officers, including the effects of any outcomes related thereto; continued availability of capital and financing; the ability to obtain the various synergies envisioned between the Company and Beyond; the ability of the Company to successfully open new stores or rebrand or operate existing Kirkland's Home stores under a Bed Bath & Beyond Home or other licensed brand; the ability of the Company to successfully market its products to new customers and expand through new e-commerce platforms and to implement its plans, forecasts and other expectations with respect to its business after the completion of the Transactions and realize additional opportunities for growth and innovation; risks associated with the Company's liquidity including cash flows from operations and the amount of borrowings under the secured revolving credit facility; the fact that our independent registered public accounting firm's report for the year ended February 1, 2025 is qualified as to our ability to continue as a going concern; the Company's ability to successfully implement cost savings and other strategic initiatives intended to improve operating results and liquidity positions; the Company's actual and anticipated progress towards its short-term and long-term objectives including its multi-brand and omni-channel strategy; the risk that natural disasters, pandemic outbreaks, global political events, war and terrorism could impact the Company's revenues, inventory and supply chain; the continuing consumer impact of inflation and countermeasures, including high interest rates; the effectiveness of the
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