The Brand House Collective | 10-Q: 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: Decreased 12.2% to $75.8 million for the 13-week period ended August 2, 2025, compared to $86.3 million for the prior year period. Comparable sales decreased 9.7%, or $8.1 million, for the same period.
• Net Sales for 26-Week Period: Decreased 11.7% to $157.3 million for the 26-week period ended August 2, 2025, compared to $178.0 million for the prior year period. Comparable sales decreased 9.3%, or $16.0 million, for the same period.

Operational Metrics

• Gross Profit: Decreased from 20.5% to 16.3% of net sales for the 13-week period ended August 2, 2025, compared to the prior year period.
• Operating Loss: Increased to -$18.7 million for the 13-week period ended August 2, 2025, compared to -$13.3 million for the prior year period.
• Net Loss: Reported net loss of -$20.2 million for the 13-week period ended August 2, 2025, compared to -$14.5 million for the prior year period.

Cash Flow

• Net Cash Used in Operating Activities: Approximately -$10.1 million for the 26-week period ended August 2, 2025, compared to -$26.4 million for the prior year period.

Unique Metrics

• E-commerce Comparable Sales: Decreased 38.5% for the 13-week period ended August 2, 2025, compared to the prior year period.

Future Outlook and Strategy

• Core Business Focus: The company plans to improve operating results and liquidity through sales growth, cost reductions, and additional financing. Actions include expense reductions in corporate overhead, store payroll, marketing, and third-party technology expenses.
• Non-Core Business: The company received $8.0 million from Beyond to purchase shares of common stock and $5.0 million from Beyond as part of an additional term loan to support the updated store conversion strategy.
• Priority: The company is focused on mitigating challenging macroeconomic conditions and improving profitability and cash flow from operations.