Dive Brief:
- Bed Bath & Beyond Inc.’s fourth quarter net revenue dropped 9.8% year over year to $273 million, per a Monday press release. The company’s gross profit declined nearly 3.5% to about $67.3 million while net loss improved from $81.3 million in the same period last year to $20.9 million.
- Bed Bath & Beyond Inc. — which operates Bed Bath & Beyond, Overstock, BuyBuy Baby and Kirkland's Home — reported 2025’s full-year revenue declined 25.1% to $1 billion. The company expects “revenue trends to continue to improve” for 2026, targeting low- to mid-single-digit top-line growth.
- In addition to its pending deal to acquire The Brand House Collective (formerly Kirkland’s Home), Bed Bath & Beyond Inc. has an “additional omnichannel transaction agreed to in principle,” though it didn’t specify the company. That deal means it will “have covered all the retail centric brands and categories” and be able to execute its larger business strategy, per a Monday letter to shareholders from CEO and Executive Chairman Marcus Lemonis.
Dive Insight:
Despite continued sales declines at Bed Bath & Beyond Inc., Lemonis pointed to the company’s progress in eliminating vendors and SKUs that were hurting margins. Additionally, the executive reiterated the company’s efforts to build a business beyond its core retail offerings.
“Our omnichannel retail brands serve as the front door relationship with the customer,” Lemonis said in a statement. “Our product categories and home services initiatives act as transaction engines that originate demand. These activities feed into our expanding digital and financial infrastructure, creating a connected home ecosystem that increases retention, improves revenue quality and expands lifetime value.”
The chief executive dubbed the broader business strategy as “The Everything Home Ecosystem,” as outlined in a graphic he posted to X on Monday. This includes growing the blockchain, investing, home services and home financing aspects of the business.
The company’s strategy is divided into three business pillars classified as its omnichannel retail brands, its “protection, advocacy and financing solutions,” and home services and installable products, per the shareholder letter.
“We are pursuing the acquisition or development of a scaled residential brokerage network as we speak, of thousands and ultimately, tens of thousands of agents,” Lemonis told analysts on a call Monday. “By building a professional labor network, we create higher transaction values, stronger attachment rates, greater customer stickiness and ongoing maintenance engagement. This infrastructure converts retail demand into completed projects and allows brokerage origination to flow into renovation activity.”
Some industry analysts remained skeptical of the company’s efforts outside retail.
“The core business continues to improve, and we believe the bull case has potential to strengthen upon a return to positive EBITDA in 2H,” Jefferies analysts said in a Monday note emailed to Retail Dive. “While management's ambitions for Pillar 2 & 3 are admirable and strategically compelling given the margin profiles of those businesses relative to Pillar 1, we believe a full slate of deals outside the core introduces sizable integration risk. We prefer to see more evidence of success before being convinced.”
Also complicating the strategy is that Bed Bath & Beyond Inc.’s core retail brands have fallen off the radar for consumers in recent years, due in part to confusion around the company’s merger, GlobalData Managing Director Neil Saunders said in emailed comments.
“All of this makes the group’s new desire to be a destination for all things home – from financing to insurance to selling products – somewhat bold,” Saunders said. “As interesting as the ambition is, it is reasonable to ask how this will work when the core retail proposition remains sub-optimal.”
