# The Brand House Collective (TBHC) Q2 2025 Financial Results Summary
NASHVILLE, Tenn. (September 16, 2025) — The Brand House Collective, Inc. (Nasdaq: TBHC) has released its financial results for the second quarter of fiscal 2025, which ended on August 2, 2025. Below is a summary of the reported metrics and key highlights from the report.
## Recent Business Highlights
– Successful grand opening of the first Bed Bath & Beyond Home store in Nashville, TN on August 8, 2025, which generated over 250 million impressions across national media.
– The sale of the Kirkland’s Home intellectual property to Bed Bath & Beyond, Inc. for **$10 million**.
– Expansion of the existing credit agreement with Bed Bath & Beyond to **$20 million** to support operations and store conversion plans.
– Plans to open an additional **5 Bed Bath & Beyond Home stores** in the greater Nashville area within fiscal 2025.
– The timetable for converting all existing Kirkland’s Home stores to Bed Bath & Beyond stores within the next **24 months**.
– Development of store plans for other Bed Bath & Beyond brands, including buybuy Baby and Overstock.
## Financial Summary for Q2 Fiscal 2025
– **Net Sales**: $75.8 million, a **12.5% decrease** from $86.3 million in Q2 2024.
– This decline was driven by a **9.7% decrease** in consolidated comparable sales and a **5% decrease** in store count.
– **Consolidated Comparable Sales**:
– Comparable store sales increased by **0.4%**, but e-commerce sales saw a significant **38.5% decline** compared to the same quarter last year.
– **Gross Profit**:
– Reported at **$12.4 million**, which is **16.3%** of net sales, down from **$17.7 million** or **20.5%** of net sales in Q2 2024.
– The decrease is attributed to a lower merchandise margin and increased store occupancy costs due to reduced sales.
– **Operating Expenses**:
– Total operating expenses were **$31.1 million**, making up **41.1%** of net sales compared to **$31.0 million** or **35.9%** of net sales in the prior year.
– Included in this total was **$2.0 million** in expenses related to tornado damage at the distribution center.
– **Net Loss**:
– Net loss of **$20.2 million**, equating to a loss of **$0.90 per diluted share**, compared to a net loss of **$14.5 million** or a loss of **$1.11 per diluted share** in the prior year.
– Diluted weighted average shares outstanding rose to approximately **22.5 million**, up from **13.1 million** due to Beyond acquiring **8.9 million shares**.
– **Adjusted Net Loss**:
– Adjusted net loss for Q2 2025 was **$17.8 million**, or an adjusted loss of **$0.79 per diluted share**, compared to an adjusted net loss of **$13.9 million** or **$1.06** per diluted share in Q2 2024.
– **Adjusted EBITDA**:
– Adjusted EBITDA was a loss of **$14.3 million**, compared to a loss of **$10.2 million** in Q2 2024.
– **Store Count**:
– The company closed **5 stores** during the quarter, resulting in a total of **309 stores** at quarter-end.
## Balance Sheet Highlights
– **Inventory**: $81.7 million, down **11.9%** from $92.8 million in the previous year.
– **Cash Balance**: $3.6 million as of August 2, 2025.
– **Outstanding Debt**:
– $41.5 million under the senior secured revolving credit facility.
– $13.7 million owed to Beyond, a related party.
– **Availability**: The company had **$3.0 million** available for borrowing under its revolving credit facility after meeting covenant requirements.
## Dividend and Share Repurchase
– The Brand House Collective did **not** declare a quarterly dividend during this reporting period.
– There was **no announcement** regarding share repurchase activity.
This summary provides a comprehensive overview of the Brand House Collective’s operations, performance metrics, and financial results for the second quarter of 2025. Further detailed analysis can be found in the conference call, scheduled for the same day as the report release.
Here are the extracted tables from the press release:
### UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
*(In thousands, except per share data)*
| August 2, 2025 | August 3, 2024 | |
|---|---|---|
| Net sales | $75,788 | $86,289 |
| Cost of sales | $63,419 | $68,629 |
| Gross profit | $12,369 | $17,660 |
| Operating expenses: | ||
| Compensation and benefits | $17,827 | $18,653 |
| Other operating expenses | $12,643 | $11,384 |
| Depreciation (exclusive of depreciation included in cost of sales) | $591 | $925 |
| Asset impairment | $52 | $20 |
| Total operating expenses | $31,113 | $30,982 |
| Operating loss | $(18,744) | $(13,322) |
| Interest expense | $1,464 | $1,420 |
| Other income | $(39) | $(120) |
| Loss before income taxes | $(20,169) | $(14,622) |
| Income tax expense (benefit) | $10 | $(118) |
| Net loss | $(20,179) | $(14,504) |
| Loss per share: | ||
| Basic | $(0.90) | $(1.11) |
| Diluted | $(0.90) | $(1.11) |
| Weighted average shares outstanding: | ||
| Basic | 22,460 | 13,074 |
| Diluted | 22,460 | 13,074 |
—
### UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
*(In thousands)*
| ASSETS | August 2, 2025 | February 1, 2025 | August 3, 2024 |
|---|---|---|---|
| Current assets: | |||
| Cash and cash equivalents | $3,641 | $3,820 | $4,461 |
| Inventories, net | $81,693 | $81,899 | $92,760 |
| Prepaid expenses and other current assets | $6,312 | $5,585 | $8,216 |
| Total current assets | $91,646 | $91,304 | $105,437 |
| Property and equipment, net | $18,749 | $22,062 | $25,454 |
| Operating lease right-of-use assets | $108,672 | $121,229 | $128,046 |
| Other assets | $2,863 | $7,593 | $7,282 |
| Total assets | $221,930 | $242,188 | $266,219 |
| LIABILITIES AND SHAREHOLDERS’ DEFICIT | |||
| Current liabilities: | |||
| Accounts payable | $56,583 | $43,935 | $59,967 |
| Accrued expenses and other liabilities | $21,386 | $20,183 | $20,956 |
| Operating lease liabilities | $37,372 | $39,355 | $38,602 |
| Related party debt | $1,541 | $— | $— |
| Current debt, net | $— | $49,199 | $— |
| Total current liabilities | $116,882 | $152,672 | $119,525 |
| Operating lease liabilities | $83,100 | $95,085 | $100,565 |
| Related party debt, net | $11,895 | $— | $— |
| Long-term debt, net | $41,520 | $10,003 | $61,396 |
| Other liabilities | $3,694 | $3,445 | $4,438 |
| Total liabilities | $257,091 | $261,205 | $285,924 |
| Shareholders’ deficit | $(35,161) | $(19,017) | $(19,705) |
| Total liabilities and shareholders’ deficit | $221,930 | $242,188 | $266,219 |
