Brand House Q3 sales fall 9.5% ahead of Bed, Bath & Beyond deal
The Brand House Collective, formerly Kirkland's Inc., reported third-quarter results that fell short of Street expectations as it awaits the completion of its acquisition by Bed, Bath & Beyond Inc.
In November, Bed, Bath & Beyond entered into a merger deal to acquire Brand House for $26.8 million in a move to create an “everything home” company. The deal expected to close in the first quarter of 2026.
Brand House’s net sales fell 9.5% to $103.5 million for the quarter ended Nov. 1, down from $114.4 million in the year-ago period, driven by a 7.4% decline in consolidated comparable sales and a decline in store count of approximately 6%. Analysts were expecting revenue of $109.3 million. By channel, store comps increased, while e-commerce plunged 34.6%.
During the period, the company closed three Kirkland’s Home stores and converted three stores to Bed Bath & Beyond Home stores, ending the quarter with 303 Kirkland’s and three Bed Bath & Beyond Home stores across 35 states. (Brand House is on track to convert all Kirkland's Home stores into Bed Bath & Beyond stores during the next 24 months.)
The retailer posted a third-quarter net loss $3.7 million, or a loss of $0.16 cents per share, compared to a loss of $7.7 million, or a loss of $0.59 per share in the prior year’s quarter. Adjusted net loss in the quarter was $13.6 million, or a loss of of $0.61 per share, compared to adjusted net loss of $3.8 million, or a loss of $0.29 per diluted in the prior year quarter. Analysts had expected an adjusted net loss of $0.13.
Operating expenses fell 33% year over year to $23.1 million.
Brand House Collective CEO Amy Sullivan was upbeat on the company’s ongoing transformation efforts.
“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,” she stated.
Sullivan noted that the successful conversion of the company’s Tennessee locations to the Bed Bath & Beyond Home format demonstrates the progress it is making in its 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,” she said. “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.”
