The Brand House Collective | 8-K: FY2026 Q3 Revenue Misses Estimate at USD 103.46 M

Revenue: As of FY2026 Q3, the actual value is USD 103.46 M, missing the estimate of USD 105.47 M.

EPS: As of FY2026 Q3, the actual value is USD -0.16, beating the estimate of USD -0.46.

EBIT: As of FY2026 Q3, the actual value is USD -255 K.

Segment Revenue

• Net sales for the third quarter of 2025 were $103.5 million, a decrease from $114.4 million in the prior year quarter, primarily due to a 7.4% decline in consolidated comparable sales and a reduction in store count by approximately 6%.

Operational Metrics

• Gross profit was $21.1 million, or 20.4% of net sales, compared to $32.1 million, or 28.1% of net sales in the prior year quarter, mainly due to a decline in merchandise margin and deleverage of store occupancy costs.
• Operating expenses were $23.1 million, or 22.3% of net sales, down from $34.5 million, or 30.2% of net sales in the prior year, driven by reduced marketing spend and lower costs for self-insured employee benefits, along with a $10.0 million gain on the sale of the Kirkland’s brand to Beyond.
• Net loss for the third quarter was $3.7 million, or a loss of $0.16 per diluted share, compared to a net loss of $7.7 million, or a loss of $0.59 per diluted share in the prior year quarter.
• Adjusted net loss was $13.6 million, or an adjusted loss of $0.61 per diluted share, compared to an adjusted net loss of $3.8 million, or an adjusted loss of $0.29 per diluted share in the prior year quarter.
• Adjusted EBITDA was a loss of $9.9 million compared to income of $0.5 million in the prior year quarter.

Cash Flow

• Net cash used in operating activities for the 39-week period ended November 1, 2025, was - $35.989 million, compared to - $39.034 million in the prior year period.
• Net cash provided by investing activities was $8.097 million, compared to - $1.633 million in the prior year period, primarily due to proceeds from the sale of internally developed intangible assets.
• Net cash provided by financing activities was $30.529 million, compared to $43.618 million in the prior year period.

Unique Metrics

• The company closed three Kirkland’s Home stores and converted three Kirkland’s Home stores to Bed Bath & Beyond Home stores, ending the quarter with 303 Kirkland’s Home stores and three Bed Bath & Beyond Home stores.

Outlook / Guidance

• The company is optimistic about the pending merger with Bed Bath & Beyond, which is expected to combine complementary strengths and create a powerful omnichannel platform for sustained growth. The merger is anticipated to strengthen the comprehensive home retail offering, unlock operational and financial synergies, and enhance long-term growth potential for shareholders.