Dive Brief:
- In a major rebrand and “operational reset” announced Tuesday, Kirkland’s plans to change its corporate name to The Brand House Collective, reflecting its tie-up with Beyond Inc. and brands Bed Bath & Beyond, Overstock and BuyBuy Baby. Shareholders will vote on the change at Kirkland’s July 24 annual meeting.
- The move follows Beyond Inc.’s $5 million acquisition of the home goods retailer’s IP last month. The companies had forged a strategic partnership in October when Beyond provided Kirkland’s with $17 million in debt financing.
- Also on Tuesday, Kirkland’s released its Q1 results, a raft of top and bottom line declines, and announced shakeups to its board and executive suite.
Dive Insight:
Kirkland’s plans are the latest in a dizzying series of branding and operating shifts at Beyond Inc.
Two years ago Overstock acquired Bed Bath & Beyond for $21.5 million, rebranded to Beyond and shut down the Overstock site. Months later, the company called closing up Overstock “a fatal mistake” and has not only restored its website but is also now planning to open Overstock stores. Earlier this year, Beyond sold a majority stake in Zulily for $5 million, after acquiring it last year for $4.5 million, and approved the opening of a BuyBuy Baby store, just months after closing all of that banner’s locations.
Kirkland’s CEO Amy Sullivan said in a statement Tuesday that “from the moment our partnership with Beyond began it was clear that our model needed to evolve” and that the goal is to build “a leaner, flatter and performance-led organization — driven by transformation, anchored in accountability, and powered by new ideas that we believe will deliver results.”
Becoming “a multi-brand merchandising, supply chain and retail operator” will entail “reducing excess inventory, closing underperforming locations, optimizing real estate assets, and enhancing talent across the organization,” she also said.
To that end, Kirkland’s has brought on new executives, including Express Inc. veteran Jamie Schisler as chief operating officer; Target veteran Kerri Dlugokinski as vice president general merchandising manager at Bed Bath & Beyond Home; and an executive with experience in supply chain strategy and efficiency, Courtenay Adolf, to lead global sourcing, transportation and distribution centers.
The company also shuffled its board ranks. Susan Lanigan left Thursday, and those leaving June 24 include Ann Joyce, who served as interim CEO before Sullivan’s appointment last year; Charlie Pleas III; Chris Shimojima; and Jill Soltau, previously CEO of J.C. Penney and Joann.
Sullivan will remain, though her title will change to CEO and chief merchant and creative officer of The Brand House Collective. Joining her on the board June 24 will be Eric Schwartzman, a veteran of legacy Bed Bath & Beyond; Neely Tamminga, a co-founder of strategic advisory firm Distill and previously a senior research analyst at Piper Jaffray & Co.; Tamara Ward, previously chief operating officer at Camping World, where Beyond Inc. Executive Chairman and Principal Executive Officer Marcus Lemonis is also CEO; and Steve Woodward, previously CEO of Kirkland's Home and executive at Crate & Barrel and Pier 1 Imports.
The existing tie-up between Kirkland’s and Bed Bath & Beyond will continue to drive both operations and branding.
On Tuesday Kirkland’s reiterated plans to consolidate real estate and then “move forward with approximately 290 of our current store locations as the foundational footprint for Kirkland's Home, Bed Bath & Beyond Home, and Overstock.”
That includes converting Kirkland's Home stores to Bed Bath & Beyond Home stores, the first in Brentwood, Tennessee, in August, followed quickly by five more and, though 2026, another 75 or so, per Tuesday’s release. At the same time, the Kirkland's Home website will be co-branded with Bed Bath & Beyond Home, the company said.
And Overstock, previously an online-only retailer, will open its first store in Nashville, with plans to expand to about 30. The company is also “finalizing store designs for BuyBuy Baby and other potential concepts.” The company is exploring a franchise model in addition to running its own stores.
Kirkland’s as The Brand House Collective is attempting this series of turnarounds and reorganizations at a volatile time for furniture and home goods retail. The segment has been in a funk following a pandemic-related boom, though May sales rose nearly 9% year over year. On Monday At Home filed for bankruptcy, citing tariffs and consumer uncertainty.
Kirkland's itself struggled in Q1: Net sales fell more than 11% year over year to $81.5 million, with store comps down 3.1% and e-commerce down 26.7%. Gross margin shrank to 24.9% from 29.5% a year ago, as net loss expanded by 34% to $11.8 million.
