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Bed Bath & Beyond Home Grand Opening Surpasses Expectations, Underscoring Brand Strength
Kirkland's Home IP Sale Accelerates Conversions and Unlocks Wholesale Expansion
Reports Q2 Fiscal 2025 Financial Results
NASHVILLE, Tenn., Sept. 16, 2025 /PRNewswire/ -- The Brand House Collective, Inc. (Nasdaq: TBHC) ("Brand House Collective" or the "Company"), formerly Kirkland's, Inc., announced recent business highlights including the successful grand opening for its first Bed Bath & Beyond Home store and the sale of the Kirkland's Home intellectual property to Bed Bath & Beyond, Inc. ("Beyond"). In addition, the Company announced its financial results for the 13-week and 26-week periods ended August 2, 2025.
Amy Sullivan, CEO of Brand House Collective, said, "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. 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. This is just the beginning of what's ahead."
Recent Business Highlights
Second Quarter 2025 Financial Results
Ms. Sullivan commented, "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. 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."
Balance Sheet
*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
The Brand House Collective's management will host a conference call to discuss its financial results for the second quarter ended August 2, 2025, followed by a question-and-answer period with President and CEO, Amy Sullivan, and SVP and CFO, Andrea Courtois.
Date: Tuesday, September 16, 2025
Time: 9:00 a.m. Eastern Time
Toll-free dial-in number: (855) 560-2577
International dial-in number: (412) 542-4163
Please call the conference telephone number 10-15 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact ICR at [email protected].
The conference call will be broadcast live and available for replay here and via the investor relations section of the Company's website at www.kirklands.com. The online replay will follow shortly after the call and continue for one year.
A telephonic replay of the conference call will be available after the conference call through September 23, 2025.
Toll-free replay number: (877) 344-7529
International replay number: (412) 317-0088
Replay ID: 7522303
Contact: | Investor Relations The Brand House Collective, Inc. Andrea Courtois 1-615-872-4800 | Investor Relations ICR Caitlin Churchill 1-203-682-8200 | Media The Brand House Collective, Inc. |
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 (the "Transactions") on the Company's business relationships; 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 Company's marketing campaigns; risks related to changes in U.S. policy related to imported merchandise, particularly with regard to the impact of tariffs on goods imported from China and strategies undertaken to mitigate such impact; the Company's ability to retain its senior management team; volatility in the price of the Company's common stock, the competitive environment in the home décor industry in general and in the Company's specific market areas; inflation, fluctuations in cost and availability of inventory; increased transportation costs and potential interruptions in supply chain, distribution systems and delivery network, including the Company's e-commerce systems and channels; the ability to control employment and other operating costs; availability of suitable retail locations and other growth opportunities; disruptions in information technology systems including the potential for security breaches of the Company's information or its customers' information, seasonal fluctuations in consumer spending, and economic conditions in general. Those and other risks are more fully described in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K filed on May 2, 2025, as amended on May 30, 2025, and subsequent reports. Forward-looking statements included in this release are made as of the date of this release. Any changes in assumptions or factors on which such statements are based could produce materially different results. Except as required by law, the Company disclaims any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.
THE BRAND HOUSE COLLECTIVE, INC. | ||||||||
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||||||
(In thousands, except per share data) | ||||||||
| ||||||||
13-Week Period Ended | ||||||||
August 2, | August 3, | |||||||
2025 | 2024 | |||||||
Net sales | $ | 75,788 | $ | 86,289 | ||||
Cost of sales | 63,419 | 68,629 | ||||||
Gross profit | 12,369 | 17,660 | ||||||
Operating expenses: | ||||||||
Compensation and benefits | 17,827 | 18,653 | ||||||
Other operating expenses | 12,643 | 11,384 | ||||||
Depreciation (exclusive of depreciation included in cost of sales) | 591 | 925 | ||||||
Asset impairment | 52 | 20 | ||||||
Total operating expenses | 31,113 | 30,982 | ||||||
Operating loss | (18,744) | (13,322) | ||||||
Interest expense | 1,464 | 1,420 | ||||||
Other income | (39) | (120) | ||||||
Loss before income taxes | (20,169) | (14,622) | ||||||
Income tax expense (benefit) | 10 | (118) | ||||||
Net loss | $ | (20,179) | $ | (14,504) | ||||
Loss per share: | ||||||||
Basic | $ | (0.90) | $ | (1.11) | ||||
Diluted | $ | (0.90) | $ | (1.11) | ||||
Weighted average shares outstanding: | ||||||||
Basic | 22,460 | 13,074 | ||||||
Diluted | 22,460 | 13,074 | ||||||
THE BRAND HOUSE COLLECTIVE, INC. | ||||||||
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||||||
(In thousands, except per share data) | ||||||||
| ||||||||
26-Week Period Ended | ||||||||
August 2, | August 3, | |||||||
2025 | 2024 | |||||||
Net sales | $ | 157,292 | $ | 178,042 | ||||
Cost of sales | 124,639 | 133,314 | ||||||
Gross profit | 32,653 | 44,728 | ||||||
Operating expenses: | ||||||||
Compensation and benefits | 35,681 | 37,939 | ||||||
Other operating expenses | 24,909 | 25,702 | ||||||
Depreciation (exclusive of depreciation included in cost of sales) | 1,251 | 1,886 | ||||||
Asset impairment | 72 | 31 | ||||||
Total operating expenses | 61,913 | 65,558 | ||||||
Operating loss | (29,260) | (20,830) | ||||||
Interest expense | 2,812 | 2,547 | ||||||
Other income | (123) | (236) | ||||||
Loss before income taxes | (31,949) | (23,141) | ||||||
Income tax expense | 54 | 193 | ||||||
Net loss | $ | (32,003) | $ | (23,334) | ||||
Loss per share: | ||||||||
Basic | $ | (1.44) | $ | (1.79) | ||||
Diluted | $ | (1.44) | $ | (1.79) | ||||
Weighted average shares outstanding: | ||||||||
Basic | 22,277 | 13,019 | ||||||
Diluted | 22,277 | 13,019 | ||||||
THE BRAND HOUSE COLLECTIVE, INC. | ||||||||||||
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||||||
(In thousands) | ||||||||||||
| ||||||||||||
August 2, | February 1, | August 3, | ||||||||||
2025 | 2025 | 2024 | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 3,641 | $ | 3,820 | $ | 4,461 | ||||||
Inventories, net | 81,693 | 81,899 | 92,760 | |||||||||
Prepaid expenses and other current assets | 6,312 | 5,585 | 8,216 | |||||||||
Total current assets | 91,646 | 91,304 | 105,437 | |||||||||
Property and equipment, net | 18,749 | 22,062 | 25,454 | |||||||||
Operating lease right-of-use assets | 108,672 | 121,229 | 128,046 | |||||||||
Other assets | 2,863 | 7,593 | 7,282 | |||||||||
Total assets | $ | 221,930 | $ | 242,188 | $ | 266,219 | ||||||
LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 56,583 | $ | 43,935 | $ | 59,967 | ||||||
Accrued expenses and other liabilities | 21,386 | 20,183 | 20,956 | |||||||||
Operating lease liabilities | 37,372 | 39,355 | 38,602 | |||||||||
Related party debt | 1,541 | — | — | |||||||||
Current debt, net | — | 49,199 | — | |||||||||
Total current liabilities | 116,882 | 152,672 | 119,525 | |||||||||
Operating lease liabilities | 83,100 | 95,085 | 100,565 | |||||||||
Related party debt, net | 11,895 | — | — | |||||||||
Long-term debt, net | 41,520 | 10,003 | 61,396 | |||||||||
Other liabilities | 3,694 | 3,445 | 4,438 | |||||||||
Total liabilities | 257,091 | 261,205 | 285,924 | |||||||||
Shareholders' deficit | (35,161) | (19,017) | (19,705) | |||||||||
Total liabilities and shareholders' deficit | $ | 221,930 | $ | 242,188 | $ | 266,219 | ||||||
THE BRAND HOUSE COLLECTIVE, INC. | ||||||||
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||
(In thousands) | ||||||||
| ||||||||
26-Week Period Ended | ||||||||
August 2, | August 3, | |||||||
2025 | 2024 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (32,003) | $ | (23,334) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation of property and equipment | 4,150 | 5,137 | ||||||
Amortization of debt issuance and original issue discount costs | 843 | 256 | ||||||
Asset impairment | 72 | 31 | ||||||
Gain (loss) on disposal of property and equipment | 19 | (7) | ||||||
Stock-based compensation expense | 321 | 556 | ||||||
Changes in assets and liabilities: | ||||||||
Inventories, net | 206 | (18,670) | ||||||
Prepaid expenses and other current assets | (727) | (613) | ||||||
Accounts payable | 12,403 | 14,514 | ||||||
Accrued expenses | 1,261 | (2,207) | ||||||
Operating lease assets and liabilities | (1,411) | (1,990) | ||||||
Other assets and liabilities | 4,800 | (61) | ||||||
Net cash used in operating activities | (10,066) | (26,388) | ||||||
| ||||||||
Cash flows from investing activities: | ||||||||
Proceeds from sale of property and equipment | 18 | 17 | ||||||
Capital expenditures | (1,026) | (1,193) | ||||||
Net cash used in investing activities | (1,008) | (1,176) | ||||||
| ||||||||
Cash flows from financing activities: | ||||||||
Borrowings on revolving line of credit | 88,644 | 22,800 | ||||||
Repayments on revolving line of credit | (90,124) | (4,100) | ||||||
Borrowings on term loans | 5,000 | 10,000 | ||||||
Payments of debt and equity issuance costs | (570) | (429) | ||||||
Cash used in net share settlement of stock options and restricted stock units | (55) | (51) | ||||||
Proceeds from issuance of common stock | 8,000 | — | ||||||
Net cash provided by financing activities | 10,895 | 28,220 | ||||||
| ||||||||
Cash and cash equivalents: | ||||||||
Net (decrease) increase | (179) | 656 | ||||||
Beginning of the period | 3,820 | 3,805 | ||||||
End of the period | $ | 3,641 | $ | 4,461 | ||||
| ||||||||
Supplemental schedule of non-cash activities: | ||||||||
Non-cash accruals for purchases of property and equipment | $ | 325 | $ | 227 | ||||
Non-cash accruals for debt and equity issuance costs | 632 | 830 | ||||||
| ||||||||
Conversion of convertible note, accrued interest and unamortized debt issuance costs into | $ | 6,676 | — | |||||
Common stock issued in exchange for equity issuance costs | 574 | — | ||||||
Non-GAAP Financial Measures
To supplement our unaudited consolidated condensed financial statements presented in accordance with generally accepted accounting principles ("GAAP"), this earnings release contains certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted operating loss, adjusted net loss and adjusted diluted loss per share. These measures are not in accordance with, and are not intended as alternatives to, GAAP financial measures. The Company uses these non-GAAP financial measures internally in analyzing our financial results and believes that they provide useful information to analysts and investors, as a supplement to GAAP financial measures, in evaluating the Company's operational performance.
The Company defines EBITDA as net loss before income tax expense, interest expense, other income and depreciation. Adjusted EBITDA is defined as EBITDA adjusted to remove asset impairment, stock-based compensation expense (due to the non-cash nature of this expense), severance charges (as it fluctuates based on the needs of the business and does not represent a normal recurring operating expense), tornado related costs (as these do not represent a normal recurring expenses), and any financing related legal or professional fees that, due to their nature, did not qualify for capitalization as deferred debt or equity issuance costs.
Adjusted operating loss is defined as operating loss adjusted for asset impairment, stock-based compensation expense, severance charges, tornado related costs and financing related legal or professional fees not qualifying for capitalization. The Company defines adjusted net loss as net loss adjusted for asset impairment, stock-based compensation expense, severance charges, tornado related costs, financing related legal or professional fees not qualifying for capitalization and the related tax adjustments. The Company defines adjusted loss per diluted share as adjusted net loss divided by weighted average diluted share count.
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Each non-GAAP financial measure has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP.
The following table shows an unaudited non-GAAP measure reconciliation of net loss to EBITDA and adjusted EBITDA (in thousands) for the periods indicated:
13-Week Period Ended | 26-Week Period Ended | |||||||||||||||
August 2, | August 3, | August 2, | August 3, | |||||||||||||
Net loss | $ | (20,179) | $ | (14,504) | $ | (32,003) | $ | (23,334) | ||||||||
Income tax expense (benefit) | 10 | (118) | 54 | 193 | ||||||||||||
Interest expense | 1,464 | 1,420 | 2,812 | 2,547 | ||||||||||||
Other income | (39) | (120) | (123) | (236) | ||||||||||||
Depreciation | 2,060 | 2,513 | 4,150 | 5,137 | ||||||||||||
EBITDA | (16,684) | (10,809) | (25,110) | (15,693) | ||||||||||||
Adjustments: | ||||||||||||||||
Asset impairment(1) | 52 | 20 | 72 | 31 | ||||||||||||
Stock-based compensation expense(2) | 82 | 264 | 321 | 556 | ||||||||||||
Beyond transaction costs not subject to capitalization(3) | 100 | — | 229 | — | ||||||||||||
Severance charges(4) | 157 | 317 | 283 | 390 | ||||||||||||
Tornado expenses, net(5) | 1,974 | — | 1,974 | — | ||||||||||||
Total adjustments | 2,365 | 601 | 2,879 | 977 | ||||||||||||
Adjusted EBITDA | $ | (14,319) | $ | (10,208) | $ | (22,231) | $ | (14,716) | ||||||||
The following table shows an unaudited non-GAAP measure reconciliation of operating loss to adjusted operating loss (in thousands) for the periods indicated:
13-Week Period Ended | 26-Week Period Ended | |||||||||||||||
August 2, | August 3, | August 2, | August 3, | |||||||||||||
Operating loss | $ | (18,744) | $ | (13,322) | $ | (29,260) | $ | (20,830) | ||||||||
Adjustments: | ||||||||||||||||
Asset impairment(1) | 52 | 20 | 72 | 31 | ||||||||||||
Stock-based compensation expense(2) | 82 | 264 | 321 | 556 | ||||||||||||
Beyond transaction costs not subject to capitalization(3) | 100 | — | 229 | — | ||||||||||||
Severance charges(4) | 157 | 317 | 283 | 390 | ||||||||||||
Tornado expenses, net(5) | 1,974 | — | 1,974 | — | ||||||||||||
Total adjustments | 2,365 | 601 | 2,879 | 977 | ||||||||||||
Adjusted operating loss | $ | (16,379) | $ | (12,721) | $ | (26,381) | $ | (19,853) | ||||||||
The following table shows an unaudited non-GAAP measure reconciliation of net loss and diluted loss per share to adjusted net loss and adjusted diluted loss per share (in thousands, except per share data) for the periods indicated:
13-Week Period Ended | 26-Week Period Ended | |||||||||||||||
August 2, | August 3, | August 2, | August 3, | |||||||||||||
Net loss | $ | (20,179) | $ | (14,504) | $ | (32,003) | $ | (23,334) | ||||||||
Adjustments: | ||||||||||||||||
Asset impairment(1) | 52 | 20 | 72 | 31 | ||||||||||||
Stock-based compensation expense(2) | 82 | 264 | 321 | 556 | ||||||||||||
Beyond transaction costs not qualifying for capitalization(3) | 100 | — | 229 | — | ||||||||||||
Severance charges(4) | 157 | 317 | 283 | 390 | ||||||||||||
Tornado expenses, net(5) | 1,974 | — | 1,974 | — | ||||||||||||
Total adjustments | 2,365 | 601 | 2,879 | 977 | ||||||||||||
Tax benefit of adjustments | 10 | 4 | 20 | 18 | ||||||||||||
Total adjustments, net of tax | 2,375 | 605 | 2,899 | 995 | ||||||||||||
Adjusted net loss | $ | (17,804) | $ | (13,899) | $ | (29,104) | $ | (22,339) | ||||||||
Diluted loss per share | $ | (0.90) | $ | (1.11) | $ | (1.44) | $ | (1.79) | ||||||||
Adjusted diluted loss per share | $ | (0.79) | $ | (1.06) | $ | (1.31) | $ | (1.72) | ||||||||
Diluted weighted average shares outstanding | 22,460 | 13,074 | 22,277 | 13,019 | ||||||||||||
(1) | Asset impairment charges are related to store property and equipment. | ||||
(2) | Stock-based compensation expense includes amounts amortized to expense related to equity incentive plans. | ||||
(3) | Consulting and legal fees incurred relating to the Company's transactions with Beyond that, due to their nature, did not qualify for capitalization as deferred debt or equity issuance costs. Given the magnitude and scope of these strategic transactions, the Company considers the incremental consulting and legal fees incurred not reflective of the ongoing costs to operate its business. | ||||
(4) | Severance charges include expenses related to severance agreements and permanent store closure compensation costs. | ||||
(5) | Tornado related costs include the write-off of damaged inventory, a component of cost of sales, and expenses to move product to temporary storage and professional fees to secure and repair the damage caused by the tornado that damaged the Company's distribution center in Jackson, Tennessee on May 20, 2025 which are recorded in other operating expenses, net of insurance proceeds. | ||||
SOURCE The Brand House Collective, Inc.
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