As the company awaits the closing of its acquisition by Bed Bath & Beyond, The Brand House Collective posted third-quarter sales and earnings that fell short of Wall Street estimates, although store comparable sales gained.
Net loss was $3.7 million, or 16 cents per diluted share, versus $7.7 million, or 59 cents per diluted share, in the prior-year quarter, Brand House, formerly Kirkland’s Home, reported. Adjusted for one-time events, net loss was $13.6 million, or 61 cents per diluted share, versus a net loss of $3.8 million, or 29 cents per diluted share, in the year-earlier period.
An analyst estimate published by Yahoo Finance called for a loss of 42 cents per adjusted diluted share and revenue of $105.5 million.
Brand House net sales were $103.5 million versus $114.4 million in the year-before quarter, driven by a 7.4% decrease in comparable sales and a 6% decline in store count. The overall comp decrease consisted of a 1.7% store increase and 34.6% e-commerce decrease in the period year over year, the company noted. Operating loss was $2 million versus $2.4 million in the quarter a year previous.
Brand House closed three Kirkland’s Home stores and converted three Kirkland’s Home stores to the Bed Bath & Beyond Home banner in the quarter. The company ended the period with 303 Kirkland’s Home stores and three Bed Bath & Beyond Home stores.
In announcing the financial results, Amy Sullivan, Brand House Collective CEO, said, “Our inventory optimization efforts are strategically supporting our store conversion program, creating space for expanded Bed Bath & Beyond assortments as we transform our retail footprint. The successful conversion of our Tennessee locations to the Bed Bath & Beyond Home format demonstrates the progress we’re making in this evolution. Looking ahead, the pending merger with Bed Bath & Beyond will combine our complementary strengths and will enable us to build a powerful omnichannel platform for sustained growth. We are confident this combination will strengthen our comprehensive home retail offering, unlock meaningful operational and financial synergies, and deliver increased earnings power with enhanced long-term growth potential for all shareholders.”
