The Brand House Collective | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 75.79 M

Revenue: As of FY2026 Q2, the actual value is USD 75.79 M, missing the estimate of USD 77.63 M.

EPS: As of FY2026 Q2, the actual value is USD -0.9, missing the estimate of USD -0.74.

EBIT: As of FY2026 Q2, the actual value is USD -17.28 M.

Segment Revenue

• Net sales for the second quarter of 2025 were $75.8 million, a decrease from $86.3 million in the prior year quarter, driven by a 9.7% decline in consolidated comparable sales and a decline in store count of approximately 5%.

Operational Metrics

• Gross profit was $12.4 million, or 16.3% of net sales, compared to $17.7 million, or 20.5% of net sales in the prior year quarter, primarily due to a decline in merchandise margin and the deleverage of store occupancy costs on lower sales.
• Operating expenses were $31.1 million, or 41.1% of net sales, compared to $31.0 million, or 35.9% of net sales in the prior year quarter, with $2.0 million in expenses related to tornado damage.
• Net loss for the second quarter of 2025 was $20.2 million, or a loss of $0.90 per diluted share, compared to $14.5 million, or a loss of $1.11 per diluted share in the prior year quarter.

Cash Flow

• Net cash used in operating activities for the 26-week period ended August 2, 2025, was - $10.1 million, compared to - $26.4 million in the prior year period.

Unique Metrics

• The Company incurred $2.0 million in expenses related to tornado damage at its distribution center, which included freight to move product to temporary storage facilities and professional fees to secure and repair the site.

Outlook / Guidance

• The Company plans to open 5 additional Bed Bath & Beyond Home stores in the greater Nashville market in fiscal 2025 and aims 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.