Bed Bath & Beyond has another omnichannel deal ‘agreed to in principle’
Bed Bath & Beyond Inc. isn’t done rounding out its portfolio.
The company is currently awaiting the closing of its agreement to buy The Brand House Collective (formerly Kirkland’s Home). And it also has something else in the works.
“We have an additional omnichannel transaction agreed to in principle that we expect will add an additional $500 million of incremental annualized revenue,” executive chairman and CEO Marcus Lemonis wrote in a Feb. 23 letter to shareholders. “We believe with this anticipated transaction we will have covered all the retail centric brands and categories to fully execute our plan with small tuck ins from time to time rounding out the offering.”
In the letter, Lemonis said that, upon the closing of the Kirkland’s transaction, the company’s combined base business — encompassing Bed Bath & Beyond, Overstock, BuyBuy Baby and Kirkland’s — will generate approximately $1.5 billion revenue on an annualized basis.
“We have an additional omni-channel transaction agreed to in principle that we expect will add an additional $500 million of incremental annualized revenue,” executive chairman and CEO Marcus Lemonis wrote in a Feb. 23 letter to shareholders. “We believe with this anticipated transaction we will have covered all the retail centric brands and categories to fully execute our plan with small tuck ins from time to time rounding out the offering.”
In January, Lemonis outlined a three-part strategy to transform Bed Bath & Beyond Inc. into an “Everything Home Company.”
Fourth Quarter
Lemonis released the letter the same day the company reported its fourth-quarter earnings. Net revenue fell 9.8% to $273 million for the quarter ended Dec. 3. Excluding the impact of the company’s exit from revenue declined 6.4% year over year.
The net loss was $21 million, a $60 million improvement year over year. The adjusted EBITDA loss was $4 million, a $23 million improvement year over year.
“Our fourth quarter capped a year of measurable financial and operational progress,” stated Lemonis. “We built our core retail discipline, improved margins, enhanced marketing efficiency and strengthened our balance sheet. As importantly, we saw the rate of revenue decline compress meaningfully throughout the year, positioning us for a return to top line growth.”
The company said it expects revenue trends to continue to improve in 2026, targeting low to mid-single digit top line growth for the full year while maintaining disciplined margin and expense management.
“Growth is expected to be driven by improved conversion, higher average order value, enhanced retention efforts and expanding ecosystem capabilities,” the company stated. “The company believes it is well positioned to transition from stabilization to durable growth as it advances its objective of becoming the Everything Home Company.”
