Neighborhood Intelligence announced the opening of its first brand-new Bed Bath & Beyond store in Glendale, AZ, while reporting a 98% revenue gain in its third quarter to $509.3 million year over year, driven by the acquisitions of Kirkland’s and The Container Store.
The company reported a third-quarter net loss of $26.1 million, or 28 cents per diluted share, versus a net loss of $4.5 million, or seven cents per diluted share, in the year-earlier quarter. Adjusted for any one-time charges, loss was $26.1 million, or 28 cents per diluted share, versus a loss of $11.5 million, or 19 cents per diluted share, in the year-previous period, the company stated.
An analyst consensus estimate published by Zacks Investment Research called for a loss of 18 cents per diluted share, but revenues topped the estimate by 20.55%.
Operating loss was $62.1 million versus $12.5 million in the year-prior period.
Neighborhood Intelligence said its core e-commerce revenue gained 9%, led by 75% year-over-year growth at the Overstock.com operation. Inclusive of all closed transactions, retail store fleet rationalization and modest organic growth, Neighborhood Intelligence asserted it expects consolidated revenue to reach $2 billion to $2.1 billion in 2027, with gross margins ranging from 33% to 34%.
The Glendale store (pictured above), marking the debut of Neighborhood Intelligence’s take on the freestanding Bed Bath & Beyond format, is not a Kirkland’s Bed Bath & Beyond Home conversion or a dual-branded The Container Store/Bed Bath & Beyond. At 19,000 square feet, the company maintained, the new Glendale store brings back the established Bed Bath & Beyond shopping experience, updated for today’s homes and lifestyles. Merchandised by room and occasion, the store features everything from the iconic towel wall and made beds to kitchen gadgets, storage and organization, and home décor. The Glendale Bed Bath & Beyond combines the products and brands customers have traditionally appreciated from the home specialty retail brand with The Container Store’s expertise in organization, Neighborhood Intelligence stated.
The company added it designed the store to offer inspiration, practical solutions and notable value for every room in the home, adding that the familiar Bed Bath & Beyond coupons are back. Neighborhood Intelligence said it plans to open such standalone Bed Bath & Beyond stores in Minnesota, Florida and Mississippi during 2027
Amy Sullivan, Neighborhood Intelligence president, said in a conference call the company is making progress with its store strategy.
“At The Container Store, we’re encouraged by customer engagement and growth in general merchandise as we introduce complementary Bed Bath & Beyond categories,” Sullivan said. “At Kirkland’s, our sharper focus on seasonal home decor is also encouraging. We’re seeing better merchandise margins and significant improvement in inventory productivity. We’re bringing the traditional Bed Bath & Beyond assortment and brand into more than 75 stores, with product being stocked now and signage and branding expected to be completed in early 2027. That gives customers more reasons to visit and creates an opportunity to grow revenue within the stores we already operate.”
Marcus. Lemonis, Neighborhood Intelligence executive chairman and CEO, said, in announcing the financial results: “Our legacy e-commerce business has achieved two important milestones worth noting: sustained revenue growth and adjusted EBITDA neutrality. We have accomplished what we set out to do in the underlying legacy business, and our focus now is on realizing the full potential of the enterprise we have assembled. While our baseline for 2027 is deliberately measured and assumes a continued depressed housing market, we are moving quickly to prepare for a more robust return to normalized housing activity. Our decision to accelerate the integration of our acquisitions, recalibrate inventory and simplify our operating structure reflects that conviction. We believe we can compound growth without a housing recovery, but even a modest improvement in housing activity could create meaningful upside and operating leverage.”
Sullivan, as part of the announcement, added, “We have a clear plan to drive organic growth, strengthen margins and improve operating efficiency across our business. We’re leveraging the brands, sourcing capabilities and home services infrastructure we’ve acquired to create new opportunities for growth, while remaining disciplined in how we manage costs and deploy capital. We believe these initiatives can support normalized gross margins of 33% to 34% in the near term, with a longer-term objective of 37% as our sourcing improvements, assortment strategy and higher-margin home services contribute more fully.”
