The Brand House 2026 Q3 Earnings 51.8% Net Loss Reduction Despite Revenue Decline

The Brand House Collective (TBHC) reported fiscal 2026 Q3 earnings on Dec 16th, 2025, with a narrowed net loss of $3.71 million and a 51.8% reduction in losses year-over-year. The results missed non-GAAP EPS expectations by $0.19, and the company provided no explicit guidance for future periods.

Revenue

Total revenue declined 9.6% year-over-year to $103.46 million, driven by a 7.4% drop in consolidated comparable sales and a 6% reduction in store count. E-commerce revenue fell sharply by 34.6%, partially offset by a 1.7% increase in in-store sales. The contraction was further exacerbated by inventory liquidation efforts to accommodate Bed Bath & Beyond assortments and rising tariff costs.

Earnings/Net Income

The company reduced its per-share loss to $0.16 in 2026 Q3 from $0.59 in 2025 Q3, reflecting a 72.9% improvement. Net losses also narrowed by 51.8% to $-3.71 million, down from $-7.68 million. Despite the revenue decline, the EPS improvement signals progress in cost optimization and operational restructuring.

Price Action

TBHC shares rose 7.89% on the day of the report but fell 6.11% month-to-date as of Dec 16, 2025.

Post-Earnings Price Action Review

A strategy of buying TBHC when revenues beat expectations and holding for 30 days yielded a -13.11% return, underperforming the 7.04% benchmark. The strategy’s Sharpe ratio of -0.50 highlighted risk aversion, while the 0% maximum drawdown indicated no losses during the backtest period.

CEO Commentary

CEO Amy Sullivan emphasized inventory optimization and store conversions to Bed Bath & Beyond, citing successful transformations in Tennessee locations. She described the pending merger as a strategic move to unlock operational synergies, enhance earnings power, and drive long-term growth, despite challenges like e-commerce setbacks and a 7.4% decline in consolidated comparable sales.

Guidance

The company did not provide specific revenue or EPS targets but reiterated confidence in the merger’s potential to deliver operational efficiencies and growth. Risks related to regulatory approvals and liquidity constraints were acknowledged.

Additional News

The Brand House Collective announced a $26.8 million merger with Bed Bath & Beyond, marking a pivotal strategic shift. CEO Amy Sullivan highlighted the conversion of three Tennessee stores to the Bed Bath & Beyond Home format, signaling progress in retail footprint repositioning. The company also reported a $10 million gain from the Kirkland’s brand sale. Meanwhile, shares dropped 6% post-earnings due to weaker-than-expected results and margin pressures.