Dive Brief:
- The Brand House Collective’s third quarter net sales declined about 9.6% year over year to $103.5 million, per a company press release Tuesday. The drop was driven by a 7.4% decline in consolidated comparable sales, which includes both stores and e-commerce, and a 6% drop in store count.
- By channel, store comps grew 1.7%, while e-commerce declined 34.6%. Three Kirkland's Home stores were closed in Q3 and three Kirkland's Home locations were converted to Bed Bath & Beyond Home stores.
- The retailer — which manages the Kirkland's Home, Bed Bath & Beyond, BuyBuy Baby and Overstock home brands — reported its Q3 net loss improved from $7.7 million in the same period the year before to $3.7 million. Operating expenses decreased 33% year over year to $23.1 million.
Dive Insight:
The Brand House Collective did not hold an earnings call given its pending acquisition by Bed Bath & Beyond, Inc. However, Brand House Collective CEO Amy Sullivan sounded upbeat on its transformation efforts thus far.
"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,” Sullivan said in a statement. “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. 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."
Bed Bath & Beyond Inc. in November agreed to acquire The Brand House Collective (formerly Kirkland’s) in a transaction that “implies an equity value” of about $26.8 million. The deal is expected to close in Q1 of 2026 pending shareholder approval and the consent of certain lenders.
Additionally, the deal means over 40 stores are expected to close in early 2026 and the newly combined company aims to make $20 million in cost reductions.
The relationship between both parties began in October of 2024 when Kirkland’s was given the exclusive ability to operate five neighborhood, small-format Bed Bath & Beyond stores. A new Bed Bath & Beyond Home store opened in August via the deal with Kirkland’s in Nashville, Tennessee, accepting old versions of Bed Bath & Beyond’s iconic blue coupons.
