Brand House Collective highlights Kirkland’s deal, first Bed Bath & Beyond store in Q2 earnings

Nashville, Tenn. — One day after inking the deal to sell Kirkland’s Home intellectual property to Bed Bath & Beyond, Brand House Collective released its second quarter earnings, also highlighting the grand opening of its first Bed Bath & Beyond Home store on Aug. 8.

“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,” said Amy Sullivan, CEO of Brand House Collective. “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.”

The company closed five stores during the second quarter to end the period with 309 stores. It plans to open five additional Bed Bath & Beyond Home stores in the greater Nashville market in fiscal 2025 and is on track to convert all Kirkland’s Home stores into Bed Bath & Beyond stores over the next 24 months.

Store plans for the broader portfolio of Bed Bath & Beyond brands, including Buybuy Baby and Overstock, are in development with the expectation for the first Buybuy Baby store to open in fiscal 2026.

Sullivan said, “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.”

For the period ended Aug. 2, net sales were $75.8 million, compared with $86.3 million in the prior year quarter, attributed to a 9.7% decline in consolidated comparable sales and a decline in store count of approximately 5%. This also includes a 38.5% decline in e-commerce sales for the period.

Gross profit was $12.4 million, or 16.3% of net sales, down from $17.7 million, or 20.5% of net sales in the prior year quarter. The decline is primarily a result of a decline in merchandise margin and the deleverage of store occupancy costs on lower sales.

Net loss in the second quarter of 2025 was $20.2 million, or 90 cents per diluted share, compared with $14.5 million, or a loss of $1.11 per diluted share in the prior year quarter. Diluted weighted average shares outstanding in the second quarter of 2025 were approximately 22.5 million compared to 13.1 million in the prior year quarter, mainly due to Beyond acquiring approximately 8.9 million shares of common stock in the Company.

Store plans for the broader portfolio of Bed Bath & Beyond brands, including Buybuy Baby and Overstock, are in development with the expectation for the first Buybuy Baby store to open in fiscal 2026.

For the full earnings report, click here.