All Kirkland’s Home stores to be converted to Bed Bath & Beyond
The return of the Bed Bath & Beyond store banner to the retail landscape has started.
Brand House Collective (formerly Kirkland’s Inc.) released its second quarter earnings report, which highlighted the opening of its first Bed Bath & Beyond Home store and the sale of the Kirkland's Home intellectual property to Bed Bath & Beyond Inc.
Bed Bath & Beyond Home made its debut on Aug, 6, in Nashville, with plans to open five additional locations in the greater Nashville market in fiscal 2025. Brand House said it is on track to convert all Kirkland's Home stores into Bed Bath & Beyond stores over the next 24 months. The company closed five stores during the period to end the quarter with 309 stores.
“The debut of our first Bed Bath & Beyond Home store was met with overwhelming demand, exceeding our expectations, and generating nationwide excitement that affirms the strength of this iconic brand,” stated Amy Sullivan, CEO, Brand House Collective. “That early success gives us confidence to accelerate the conversion of Kirkland's Home stores. We are also unlocking new opportunities by monetizing the Kirkland's Home name, both inside Bed Bath & Beyond stores and through wholesale partnerships with independent retailers, creating an exciting new chapter for a brand with a 60-year legacy.”
Brand House released its earnings statement the day after Bed Bath & Beyond Inc. completed its $10 million purchase of the Kirkland’s Home trade name and related brand assets from Brand House, and closed a $20 million expansion of the existing credit agreement with the company to support current operations as well as store conversion and channel expansion plans.
Store plans for the broader portfolio of Bed Bath & Beyond brands, including Buybuy Baby and Overstock, are in development with the expectation for the first Buybuy Baby store to open in fiscal 2026, according to the earnings statement.
In addition, Brand House is in the early stages of planning and expansion of Kirkland's Home into the wholesale market creating a new growth channel with the potential to add scale, improve supply chain efficiency and strengthen unit economics of current product assortment.
Brand House’s net sales in the second quarter were $75.8 million, compared to $86.3 million in the prior year quarter, driven by a 9.7% decline in consolidated comparable sales and a decline in store count of approximately 5%. Consolidated comparable sales is inclusive of a comparable store sales increase of 0.4% and e-commerce decline of 38.5% compared to the second quarter of fiscal 2024.
The company reported a net loss of $20.2 million, or a loss of $0.90 per diluted share, compared to $14.5 million, or a loss of $1.11 per diluted share in the prior year quarter.
"Our Q2 results reflect two major events that weighed heavily on the quarter: the tornado damage at our distribution center and our deliberate decision to liquidate select inventory ahead of expanding Bed Bath & Beyond assortments,” Sullivan said. “Together, these factors were the dominant drivers of the year-over-year decline in profitability and created near-term pressure on sales, particularly in e-commerce. While the tornado was a one-time disruption, our inventory actions are intentionally reallocating space and capital to Bed Bath & Beyond assortments that we believe will drive stronger growth ahead."
