The Brand House Collective has reported net sales of $103.5m in the third quarter (Q3) of 2025 - a decline from $114.4m a year previously, as the group, formerly known as Kirkland’s, narrowed losses.
The fall reflected a 7.4% drop in consolidated comparable sales alongside an approximately 6% reduction in store numbers.
The group recorded a net loss of $3.7m, or $0.16 per diluted share, compared with a net loss of $7.7m, or $0.59 per diluted share, in Q3 of fiscal 2024.
During Q3, which ended on 1 November 2025, gross profit decreased to $21.1m, equal to 20.4% of net sales, down from $32.1m, or 28.1%, in the same quarter of the previous year.
The decline was mainly due to weaker merchandise margins and the impact of fixed store occupancy costs on lower sales.
Merchandise margins were affected by inventory liquidation ahead of the expansion of Bed Bath & Beyond assortments, and by incremental tariff costs.
On an adjusted basis, the net loss widened to $13.6m, or $0.61 per diluted share, from an adjusted net loss of $3.8m, or $0.29 per diluted share, a year earlier.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) moved to a loss of $9.9m, compared with adjusted EBITDA income of $0.5m in the same period of 2024.
Operating expenses totalled $23.1m, representing 22.3% of net sales, compared with $34.5m, or 30.2% of net sales, a year earlier.
The reduction was attributed to lower marketing expenditure, reduced self-insured employee benefit costs and a $10.0m gain from the sale of the Kirkland’s brand to Beyond.
During the quarter, three Kirkland’s Home stores were closed and three were converted into Bed Bath & Beyond Home stores.
At the end of the period, the company operated 303 Kirkland’s Home stores and three Bed Bath & Beyond Home stores.
Inventory stood at $88.9m as of 1 November 2025, down from $111.2m a year earlier.
Cash amounted to $6.5m, with $61.6m of outstanding debt and $5.8m in letters of credit under the senior secured revolving credit facility.
The Brand House Collective operates more than 300 stores across 35 US states and oversees a portfolio of home and family brands through its e-commerce operations: Kirkland’s Home and Bed Bath & Beyond Home, Bed Bath & Beyond, buybuy Baby and Overstock.
