The Brand House Collective, Inc. (NASDAQ:TBHC) reported second-quarter earnings on Tuesday that fell short of analyst expectations, as revenue slid nearly 12% year-over-year during a transitional period marked by its first Bed Bath & Beyond Home store opening and recent intellectual property deals.
Despite the miss, shares ticked up 1.55% in pre-market trading.
The home furnishings retailer booked an adjusted loss of $0.79 per share, wider than the consensus forecast of $0.73. Revenue totaled $75.8 million, missing projections of $83.1 million and down from $86.3 million a year earlier, a decline of 12.2%.
The drop was attributed to a 9.7% fall in consolidated comparable sales and a 5% reduction in store count. Comparable store sales managed a modest 0.4% increase, but e-commerce revenue plunged 38.5% versus the prior year.
“Our Q2 results reflect two major events that weighed heavily on the quarter: the tornado damage at our distribution center and our deliberate decision to liquidate select inventory ahead of expanding Bed Bath & Beyond assortments,” said CEO Amy Sullivan.
The company recently sold the Kirkland’s Home intellectual property to Bed Bath & Beyond, Inc. for $10 million and expanded its credit facility by $20 million to fund operations and store conversion plans. Its first Bed Bath & Beyond Home location launched in Nashville on August 8 and, according to management, performed above expectations.
“The debut of our first Bed Bath & Beyond Home store was met with overwhelming demand, exceeding our expectations, and generating nationwide excitement that affirms the strength of this iconic brand,” Sullivan added.
Looking ahead, the retailer intends to open five more Bed Bath & Beyond Home stores in the Nashville area this fiscal year, with a longer-term goal of converting all Kirkland’s Home outlets into Bed Bath & Beyond stores within two years.
The Brand House Collective stock price
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