The Brand House Collective has reported net sales of $103.5 million in the third quarter of 2025, down from $114.4 million a year earlier, as the group, formerly known as Kirkland’s, narrowed its losses.
The decline reflected a 7.4% drop in consolidated comparable sales along with a roughly 6% reduction in store numbers.
The group posted a net loss of $3.7 million, or $0.16 per diluted share, compared with a net loss of $7.7 million, or $0.59 per diluted share, in the third quarter of fiscal 2024.
During the third quarter, which ended November 1, 2025, gross profit decreased to $21.1 million, equal to 20.4% of net sales, compared to $32.1 million, or 28.1%, in the same quarter a year ago.
The decrease was primarily due to weaker merchandise margins and the impact of fixed store occupancy costs on lower sales.
Merchandise margins were affected by inventory liquidation ahead of Bed Bath & Beyond’s assortment expansion and incremental tariff costs.
On an adjusted basis, the net loss widened to $13.6 million, or $0.61 per diluted share, from an adjusted net loss of $3.8 million, or $0.29 per diluted share, a year earlier.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to a loss of $9.9 million, compared to adjusted EBITDA revenue of $0.5 million in the same period in 2024.
Operating expenses totaled $23.1 million, representing 22.3% of net sales, compared to $34.5 million, or 30.2% of net sales, a year earlier.
The reduction was attributed to lower marketing expenses, lower self-insured employee benefit costs and a $10.0 million gain from the sale of the Kirkland’s brand to Beyond.
During the quarter, three Kirkland’s Home stores were closed and three were converted to Bed Bath & Beyond Home stores.
At the end of the period, the company operated 303 Kirkland’s Home stores and three Bed Bath & Beyond Home stores.
Inventory was $88.9 million as of Nov. 1, 2025, up from $111.2 million a year earlier.
Cash amounted to $6.5 million, with $61.6 million of outstanding debt and $5.8 million of letters of credit under the senior secured revolving credit facility.
Brand House Collective operates more than 300 stores in 35 U.S. states and oversees a portfolio of home and family brands through its e-commerce operations: Kirkland’s Home and Bed Bath & Beyond Home, Bed Bath & Beyond, buybuy Baby and Overstock.
“Brand House Collective Cuts Losses in Q3 2025” was created and originally published by Retail Insight Network, a brand owned by GlobalData.
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