File photo of 2025 Beyond Home concept store in a former Kirkland’s store. (Photo provided by Bed Bath & Beyond Inc.)
Fact facts:
- Net revenue rose 28.0% to $361 million in Q2, driven by incremental e-commerce growth and the addition of Kirkland’s retail businesses.
- That marked BBB Inc.’s second consecutive quarter of year-over-year revenue growth, following 19 straight quarters of decline.
- Active customers grew 47% year-over-year to 6.4 million; orders delivered rose 117% to 2.8 million, largely fueled by Kirkland’s contribution to results.
- Net loss widened to $39 million including acquisition costs.
- Q3 revenue is expected to near $500 million as revenues from The Container Store and newly acquired services business come online.
Nashville, Tenn. – The combination of Bed Bath & Beyond Inc.’s e-commerce sales and The Brand House Collective‘s omnichannel revenues generated a significant jump in top-line results during the second quarter.
The company – whose retail operations include bedbathandbeyond.com, Overstock and buy buy Baby – closed on the acquisition of The Brand House Collective (formerly Kirkland’s) on April 2 – at the beginning of the second quarter ended June 30.
Net revenue rose 28.0% to $361 million through incremental growth from BBB Inc.’s existing e-commerce businesses and the addition of the Kirkland’s retail businesses. Revenues from the company’s acquisition of The Container Store, Elfa, and Closet Works – which closed on July 8 – were not included in the Q2 revenue tally.
The growth marked BBB Inc.’s second consecutive quarter of year-over-year revenue growth following 19 quarters of decline.
Active customers increased to 6.4 million in Q2, up 47% year-over-year, and orders delivered increased to 2.8 million, up 117% year-over-year, reflecting growth in BBB Inc.’s base business but largely fueled by the inclusion of Kirkland’s brands. Orders per active customer increased to 1.79 from 1.32 in the prior year period, up 36% and also propelled by Kirkland’s.
“Our second quarter results show that the transformation of this business is taking hold,” said Marcus Lemonis, executive chairman and CEO. “Two quarters is not a victory, and we have no intention of treating it as one, but it is strong support that the direction of this business has changed.”
Net loss widened to $39 million compared to a net loss of $19 million in the prior year period. That includes $21 million acquisition-related costs, restructuring costs, and non-cash store-closure impairments. The company expects to experience more of those costs in Q3 as it fully integrates The Container Store and new services businesses acquisitions now in progress, including Fathom Holdings Inc. and F9 Brands Inc.
Those new business will also boost the top line, with Q3 revenue expected to move toward the low $500 million range, Lemonis told investors.
“Our omnichannel retail brands remain the front door to the customer,” he said. “We are seeing better engagement, stronger conversion, and more frequent orders per customer, which we believe tells us the customer is responding to the investments we have made.”
