Kirkland's, Inc. announced its first quarter fiscal 2025 financial results for the period ended May 3, 2025, reporting net sales of $81.5 million, a decrease from $91.8 million in the prior year. Comparable sales decreased by 8.9%, with comparable store sales down 3.1% and e-commerce sales declining 26.7%.
The company reported a net loss of $11.8 million, or $0.54 per diluted share, compared to a net loss of $8.8 million, or $0.68 per diluted share, in the prior year. Adjusted EBITDA was a loss of $7.9 million, compared to a loss of $4.5 million in the prior year quarter.
A tornado hit the company's Jackson, Tennessee distribution center on May 20, 2025, causing damage and disruptions, particularly to e-commerce operations. The company maintains insurance policies, but the full amount of costs and recoveries cannot yet be estimated.
In a major strategic shift, Kirkland's announced plans to rebrand as The Brand House Collective, Inc., reflecting its transformation into a multi-brand operator for Kirkland's Home and Beyond, Inc.'s portfolio. This includes an operational reset to streamline its footprint, aiming for approximately 290 stores for Kirkland's Home, Bed Bath & Beyond Home, and Overstock.
The company plans to accelerate brand conversions, with the first Bed Bath & Beyond Home store opening in Brentwood, TN, in August 2025, and five more to follow in the Nashville market. Additionally, Kirkland's announced changes to its Board of Directors, appointing four new members, including two nominated by Beyond, Inc., and accepting five resignations.
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