Brand House Collective Inc (TBHC) 2025 Q2 法說會逐字稿

Good morning, everyone, and thank you for participating in today's conference call to discuss the Brand House Collective's financial results for the second quarter ended August 2, 2025.

大家早安，感謝您參加今天的電話會議，討論 Brand House Collective 截至 2025 年 8 月 2 日的第二季度財務業績。

Joining us today are CEO, Amy Sullivan, and CFO, Andrea Courtois; and the company's External Director of Investor Relations, Caitlin Churchill. Following their remarks, we'll open the call for your questions.

今天與我們一起出席的有執行長艾米·沙利文 (Amy Sullivan)、財務長安德里亞·庫爾圖瓦 (Andrea Courtois) 以及公司外部投資者關係總監凱特琳·邱吉爾 (Caitlin Churchill)。在他們發言之後，我們將開始回答大家的提問。

Before we go further, I would like to turn the call over to Ms. Churchill as she reads the company's Safe Harbor Statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Caitlin, please go ahead.

在我們進一步討論之前，我想將電話轉給邱吉爾女士，她將根據 1995 年《私人證券訴訟改革法案》的含義閱讀公司的安全港聲明，該聲明對前瞻性陳述提出了重要警告。凱特琳，請繼續。

Thank you. Except for historical information discussed during this conference call, the statements made by company management are forward-looking and made pursuant to the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995.

謝謝。除本次電話會議中討論的歷史資訊外，公司管理層所作的聲明均為前瞻性聲明，並根據 1995 年《私人證券訴訟改革法案》的安全港條款作出。

Forward-looking statements involve known and unknown risks and uncertainties, which may cause The Brand House Collective's actual results in future periods to differ materially from forecasted results. Those risks and uncertainties are more fully described in the company's filings with the Securities and Exchange Commission.

前瞻性陳述涉及已知和未知的風險和不確定性，這可能導致 The Brand House Collective 未來期間的實際結果與預測結果有重大差異。這些風險和不確定性在公司向美國證券交易委員會提交的文件中進行了更詳細的描述。

A webcast replay will also be available via the link provided in today's press release as well as on the company's website at kirklands.com.

您還可以透過今天的新聞稿中提供的連結以及公司網站 kirklands.com 觀看網路直播重播。

Now I'll turn the call over to the Brand House Collective's CEO, Amy Sullivan. Amy?

現在我將把電話轉給 Brand House Collective 的執行長艾米·沙利文 (Amy Sullivan)。艾米？

Good morning, and thank you for joining us today. We're at the beginning of a new chapter as we accelerate our transformation through our partnership with Bed Bath & Beyond. Our first store is open in Brentwood, additional store conversions are already underway and the early results validate the strength of the brand to chart a new path forward.

早安，感謝您今天加入我們。透過與 Bed Bath & Beyond 的合作，我們加速了轉型，開啟了新的篇章。我們的第一家店已在布倫特伍德開業，其他店面的改造工作已在進行中，早期的成果驗證了該品牌開闢新道路的實力。

Second quarter did bring unexpected challenges, but it also clarified our direction and strengthened our conviction in the future of each brand. Before Andrea reviews the results in detail, I'll share the key factors that shaped the quarter and the progress fueling our path to future growth.

第二季確實帶來了意想不到的挑戰，但也明確了我們的方向，增強了我們對每個品牌未來的信心。在 Andrea 詳細回顧結果之前，我將分享影響本季業績的關鍵因素以及推動我們未來成長的進展。

As noted in our press release, the second quarter was impacted by two significant events. First, the disruption at our Jackson, Tennessee distribution center following the tornado in late May, and second, the strategic and ongoing liquidation of select inventory as we optimize our category mix and prepare stores for Bed Bath & Beyond conversions.

正如我們的新聞稿中指出的，第二季度受到兩件重大事件的影響。首先，5 月底的龍捲風過後，我們位於田納西州傑克遜的配送中心受到了乾擾；其次，為了優化我們的品類組合併為 Bed Bath & Beyond 的轉型做準備，我們正在對部分庫存進行戰略性和持續性的清算。

Together, these two events were the dominant drivers of the year over year decline in profitability and created significant pressure on our top line, particularly in our e-commerce channel. Looking ahead, we do expect continued liquidation of non-go-forward inventory as we accelerate store conversions. This is a necessary step unlocking liquidity by turning inventory into cash and redeploying that capital into the assortments that our customers expect in Bed Bath & Beyond Home. Our actions are deliberate and our capital is being deployed where it matters most to accelerate store conversions and strengthen our foundation for growth.

這兩件事共同導致了盈利能力同比下降，並給我們的營收，特別是電子商務管道帶來了巨大壓力。展望未來，隨著我們加快門市轉型，我們確實預期非前進庫存將繼續清算。這是釋放流動性的必要步驟，透過將庫存轉化為現金，並將資本重新部署到我們的客戶對 Bed Bath & Beyond Home 所期望的商品組合中。我們的行動是經過深思熟慮的，我們的資金被部署在最重要的地方，以加速商店轉化並加強我們的成長基礎。

Last month, we opened our first Bed Bath & Beyond Home store in Brentwood, Tennessee, and the response has been incredible. National Media coverage generated more than 250 million impressions amplifying the excitement customers showed from the moment the doors opened. Sales continue to exceed our expectations, driven by increases in traffic and average ticket.

上個月，我們在田納西州布倫特伍德開設了第一家 Bed Bath & Beyond Home 商店，反應非常熱烈。全國媒體的報導產生了超過 2.5 億次的曝光量，放大了顧客從開業那一刻起所展現的興奮感。由於客流量和平均票價的成長，銷售額繼續超出我們的預期。

This new format honors the legacy of Bed Bath & Beyond as a house of brands with more than 30 trusted national brand names throughout bedroom, bathroom and kitchen alongside seasonally relevant home decor and furnishings through our Kirkland's Home brand.

這種新形式體現了 Bed Bath & Beyond 作為品牌家族的傳統，透過我們的 Kirkland's Home 品牌，該公司擁有 30 多個值得信賴的全國性品牌，涵蓋臥室、浴室和廚房，同時還提供季節性家居裝飾和家具。

We are seeing significant growth in traffic and more importantly, new customer growth and that momentum gives us the confidence to accelerate our store conversions. The results make it clear. The Bed Bath & Beyond name is a powerful asset and the nameplate change is proving to be a high-return growth engine, driving performance for the brand itself while amplifying sales across our Kirkland's Home branded products. We will continue to leverage the Kirkland Home legacy by bringing the best of its assortments into our Bed Bath & Beyond Home stores giving customers curated solutions for every corner of their home.

我們看到流量顯著成長，更重要的是新客戶成長，這種勢頭使我們有信心加速商店的轉換。結果清楚地顯示了這一點。Bed Bath & Beyond 這個名字是一項強大的資產，而品牌名稱的改變被證明是一個高回報的成長引擎，它不僅推動了品牌本身的業績，還擴大了我們 Kirkland's Home 品牌產品的銷售量。我們將繼續發揮 Kirkland Home 的傳統，將其最好的產品帶入我們的 Bed Bath & Beyond Home 商店，為顧客提供針對其家中每個角落的精心策劃的解決方案。

Brentwood is just the beginning. In fact, our next grand opening is this Saturday, September 20 in Spring Hill, Tennessee. Over the next six weeks, four more locations in the greater Nashville market will convert to Bed Bath & Beyond Home, providing us with a range of store sizes and formats that allow us to fine-tune our assortment and capital allocation strategy to ensure we have the correct formula for every store in our fleet.

布倫特伍德只是個開始。事實上，我們的下一次盛大開幕典禮將於 9 月 20 日星期六在田納西州斯普林希爾舉行。在接下來的六週內，大納許維爾市場的另外四家店將轉變為 Bed Bath & Beyond Home，為我們提供一系列門市規模和形式，使我們能夠微調我們的產品組合和資本配置策略，以確保我們旗下每家門市都有正確的方案。

Over the next 24 months, we plan to convert all Kirkland's Home stores into Bed Bath & Beyond stores to capture this momentum and scale for long-term growth. By leveraging our existing infrastructure in stores, supply chain and product development, we're able to execute this as a capital-light transformation. Each conversion is expected to cost less than $100,000 in CapEx per store, which allows us to scale quickly, stay efficient and maximize return on capital.

在接下來的 24 個月內，我們計劃將所有 Kirkland's Home 商店轉變為 Bed Bath & Beyond 商店，以抓住這一勢頭並擴大規模，實現長期增長。透過利用我們在商店、供應鏈和產品開發方面的現有基礎設施，我們能夠實現輕資本轉型。預計每次轉換每家商店的資本支出將低於 100,000 美元，這使我們能夠快速擴大規模、保持高效並最大限度地提高資本回報率。

As we've discussed before, our vision extends across more than Bed Bath & Beyond Home to the broader portfolio of Bed Bath & Beyond brands, including buybuy BABY and Overstock. Both strategies are still in development, and I'm incredibly excited about the opportunity ahead for buybuy BABY, which will be the next omnichannel initiative we build from the ground up with our first new store expected in 2026.

正如我們之前所討論的，我們的願景不僅限於 Bed Bath & Beyond Home，還涵蓋更廣泛的 Bed Bath & Beyond 品牌組合，包括 buybuy BABY 和 Overstock。這兩項策略仍處於發展階段，我對 buybuy BABY 未來的機會感到無比興奮，這將是我們從頭開始建立的下一個全通路計劃，我們的第一家新店預計將於 2026 年開業。

As announced yesterday, we are also in the early stages of planning an expansion of Kirkland's Home into the wholesale market, which would bring our designs to independent retailers nationwide. In addition to creating a new growth channel, wholesale could add scale, improve supply chain efficiency and strengthen the unit economics of our products.

正如昨天宣布的那樣，我們還處於計劃將 Kirkland's Home 擴展到批發市場的早期階段，這將把我們的設計帶給全國各地的獨立零售商。除了創造新的成長管道之外，批發還可以擴大規模、提高供應鏈效率並增強我們產品的單位經濟效益。

We could not be more excited for this next chapter, our partnership with Bed Bath & Beyond is the cornerstone of this transformation, and Marcus and I share a strong omnichannel vision for how these brands grow. That shared conviction gives us the confidence to accelerate conversions and unlock the momentum we're already seeing.

我們對接下來的篇章感到無比興奮，我們與 Bed Bath & Beyond 的合作是這項轉型的基石，Marcus 和我對這些品牌如何發展有著共同的強大的全通路願景。這種共同的信念使我們有信心加速轉變並釋放我們已經看到的動力。

Let me now introduce Andrea, who joined us in late July with more than two decades of financial expertise in planning, analysis and inventory management. She has already established herself as a key partner in our transformation and will play a critical role in driving our long-term growth and success. Andrea?

現在讓我介紹一下安德里亞，她在七月下旬加入我們，在規劃、分析和庫存管理方面擁有二十多年的財務專業知識。她已經成為我們轉型過程中的關鍵合作夥伴，並將在推動我們的長期成長和成功方面發揮關鍵作用。安德里亞？

Thank you, Amy, and good morning, everybody. I am excited to be a part of the Brand House team in such a pivotal moment in our business. As Amy mentioned, we could not be happier with the reception of the first Bed Bath & Beyond Home store has had since opening in early August, and we are all energized for the path ahead.

謝謝你，艾米，大家早安。我很高興能夠在我們業務如此關鍵的時刻成為 Brand House 團隊的一員。正如艾米所說，自 8 月初開業以來，第一家 Bed Bath & Beyond Home 店的受歡迎程度讓我們非常高興，我們對未來的道路充滿信心。

With that said, our second quarter results reflect headwinds in our Kirkland's business as we navigated unforeseen circumstances with the impact of tornado had on our distribution center in late May and began purposeful and disciplined liquidation efforts to optimize inventory ahead of expanding our Bed Bath & Beyond assortments.

話雖如此，我們的第二季度業績反映了 Kirkland 業務面臨的阻力，因為我們應對了 5 月底龍捲風對我們的配送中心造成的影響等不可預見的情況，並開始有目的、有紀律地清算庫存，以便在擴大 Bed Bath & Beyond 的商品種類之前優化庫存。

For the second quarter, net sales were $75.8 million compared to $86.3 million in the prior year quarter. The decrease was driven by 9.7% decline in comparable sales as well as the decline in store count of approximately 5%. Our stores had a slightly positive comparable sales growth for the quarter, driven by increases in traffic and conversion, which were partially offset by lower average transaction due to liquidation efforts I mentioned. Our positive store comp was offset by a decrease of 38.5% of comparable sales in e-commerce.

第二季淨銷售額為 7,580 萬美元，去年同期為 8,630 萬美元。下降的原因是可比銷售額下降 9.7% 以及門市數量下降約 5%。本季度，我們門市的可比銷售額略有增長，這得益於客流量和轉換率的提高，但由於我提到的清算工作導致的平均交易量下降，部分抵消了這一增長。我們的門市銷售額成長被電子商務可比銷售額 38.5% 的下降所抵銷。

Our e-commerce business continues to face challenges and was also impacted by the tornado disruption to our distribution center in late May. We estimate this disruption negatively impacted our e-commerce sales by 750 basis points and total comparable sales by 190 basis points.

我們的電子商務業務繼續面臨挑戰，也受到 5 月底龍捲風襲擊我們配送中心的影響。我們估計，此次中斷對我們的電子商務銷售額產生了 750 個基點的負面影響，對可比較銷售額總額產生了 190 個基點的負面影響。

Gross margin decreased 410 basis points to 16.3% of sales primarily driven by a decline in merchandise margin and occupancy deleverage. The decline in merchandise margin was primarily due to 130 basis points related to liquidation activity, 100 basis points related to the write-off of damaged inventory due to the tornado and 30 basis points related to incremental tariff costs.

毛利率下降 410 個基點至銷售額的 16.3%，主要原因是商品利潤率下降和入住率去槓桿。商品利潤率的下降主要是由於與清算活動相關的 130 個基點、與龍捲風造成的損壞庫存註銷相關的 100 個基點以及與增量關稅成本相關的 30 個基點。

Our operating expenses increased slightly to $31.1 million from $31 million in the prior year quarter. During the quarter, we incurred $1.3 million in insurance costs related to the tornado damage. Given this incremental rental expense as well as the lower sales in the quarter as a percentage of sales, total operating expenses was 41.1% compared to 35.9% in the prior year quarter.

我們的營運費用從去年同期的 3,100 萬美元小幅增加至 3,110 萬美元。本季度，我們因龍捲風災害產生的保險費用為 130 萬美元。鑑於租金費用的增加以及本季銷售額佔銷售額的百分比較低，總營運費用為 41.1%，而去年同期為 35.9%。

Before we turn our attention to the net loss and adjusted net loss, please refer to the terminology and reconciliation between each of our adjusted metrics and the most directly comparable GAAP measurement in our earnings release issued earlier this morning.

在我們將注意力轉向淨虧損和調整後淨虧損之前，請參閱我們今天早上發布的收益報告中每個調整後指標與最直接可比較的 GAAP 指標之間的術語和對帳。

Net loss was $19.4 million for the quarter compared to $14.5 million in the prior year quarter. Adjusted net loss, which excludes estimated $2 million for the total impact of the tornado disruption was $17.8 million in the quarter, compared to an adjusted net loss of $13.9 million in the prior year. The decline compared to the prior year is primarily attributed to the impact of the headwinds associated with our e-commerce business, the liquidation activity reviewed and the incremental tariff costs incurred in the quarter.

本季淨虧損為 1,940 萬美元，去年同期為 1,450 萬美元。本季調整後的淨虧損（不包括龍捲風造成的約 200 萬美元的總影響）為 1,780 萬美元，而去年同期的調整後淨虧損為 1,390 萬美元。與上一年相比的下降主要歸因於與我們的電子商務業務相關的不利因素、審查的清算活動以及本季度產生的增量關稅成本的影響。

Adjusted loss per share was $0.90 compared to a loss of $1.11 in the prior year quarter. The year over year improvement in adjusted loss per share was entirely driven by the increase in share count from 13 million shares to 22.3 million shares due to the Beyond transaction that was completed in late third quarter of fiscal 2024.

調整後每股虧損為 0.90 美元，去年同期每股虧損為 1.11 美元。調整後每股虧損年增率完全是由於 2024 財年第三季末完成的 Beyond 交易導致股票數量從 1,300 萬股增加到 2,230 萬股。

From a balance sheet perspective, we ended the quarter with $82 million in inventory, down 12% to the ending prior year Q2 ending inventory. The decrease was driven by a temporary pause in inventory shipments during the beginning of Q2 out of Asia due to tariff uncertainty. We have since received those goods, inventory is now in a similar position to the prior year and more in line to total comparable sales trends.

從資產負債表的角度來看，本季末我們的庫存為 8,200 萬美元，比去年同期第二季末庫存下降了 12%。下降的原因是，由於關稅不確定性，第二季初亞洲的庫存出貨暫時停止。我們已經收到了這些貨物，庫存現在與上一年的情況相似，並且更符合整體可比銷售趨勢。

We had total debt outstanding of $55.2 million at the end of the quarter, which is comprised of $41.5 million under a senior revolving line of credit and $13.7 million in debt to Beyond related to the term loan, convertible term loan and sale of a percentage of Kirkland's future revenues to Beyond net of debt issuance and original issue discount costs.

截至本季末，我們的未償還債務總額為 5,520 萬美元，其中包括 4,150 萬美元的優先循環信貸額度和 1,370 萬美元的欠 Beyond 的債務，這些債務與定期貸款、可轉換定期貸款以及將 Kirkland 未來收入的一定比例出售給 Beyond 的債務發行淨額和原始發行折扣成本有關。

As of September 16, 2025, the company had $49 million of outstanding debt with $10.8 million of availability after the minimum required excess availability covenant and $13.7 million in term loans to Beyond with $20 million available from Beyond. As a reminder, availability under our revolving credit facility fluctuates largely based on eligible inventory levels and as eligible inventory increases in the second and third fiscal quarters in support of our back house sales plans, our borrowing capacity increases correspondingly.

截至 2025 年 9 月 16 日，該公司有 4,900 萬美元的未償債務，在滿足最低要求的超額可用性契約後，還有 1,080 萬美元的可用債務，並向 Beyond 提供了 1,370 萬美元的定期貸款，其中 Beyond 可提供 2,000 萬美元的貸款。提醒一下，我們的循環信貸額度下的可用性在很大程度上根據合格庫存水平而波動，並且隨著第二和第三財政季度合格庫存的增加以支持我們的後台銷售計劃，我們的借貸能力也相應增加。

In summary, as we have detailed, our second quarter results were largely impacted by two factors, the disruption of the tornado and the strategic and purposeful decision to liquidate goods in preparation for our conversion to Bed Bath & Beyond Home stores.

總而言之，正如我們之前所詳述的，我們的第二季度業績主要受到兩個因素的影響：龍捲風的破壞以及為準備轉型為 Bed Bath & Beyond Home 商店而做出的戰略性和有目的性的清算商品的決定。

As we look ahead in the second half of the year, where we do not expect any additional significant expenses related to the tornado damage, we do expect to continue our promotional activity, and we will see some incremental tariff costs beginning in the third quarter. Our teams are working hard to mitigate this impact, and we will remain focused and committed to setting the stage for the company's next phase of growth and our conversion strategy and plans through our partnership with Bed Bath & Beyond.

展望下半年，我們預計不會有任何與龍捲風災害相關的額外重大支出，我們預計將繼續進行促銷活動，並且從第三季開始我們將看到一些增量關稅成本。我們的團隊正在努力減輕這種影響，我們將繼續集中精力並致力於透過與 Bed Bath & Beyond 的合作為公司下一階段的成長以及我們的轉型策略和計劃奠定基礎。

I will now turn the call over to Amy for a few closing remarks before we open up the call for questions. Amy?

在我們開始提問之前，我現在將電話交給艾米，請她發表一些結束語。艾米？

Thank you, Andrea. As we close today's call, I want to be clear. We are not simply executing a brand conversion, we are architecting an omnichannel retail transformation. Every detail of the customer experience matters from the products we design to the way we bring our story to life through marketing, all delivered with the operational excellence our customers expect. With Bed Bath & Beyond's continued partnership, a leadership team, we continue to strengthen and early results that exceeded our expectations and validated our proof of concept, we are accelerating our national rollout with conviction.

謝謝你，安德里亞。在我們結束今天的電話會議時，我想明確一點。我們不只是執行品牌轉型，我們還在建構全通路零售轉型。從我們設計的產品到我們透過行銷將我們的故事變為現實的方式，客戶體驗的每一個細節都很重要，所有這些都以客戶期望的卓越運作來實現。在 Bed Bath & Beyond 的持續合作和領導團隊的幫助下，我們不斷加強，早期成果超出了我們的預期並驗證了我們的概念證明，我們正滿懷信心地加速在全國範圍內的推廣。

I want to thank our team for their tireless work and our shareholders for their continued support as we move forward together. The best results are ahead of us, and our focus is firmly there. Operator, we are now ready to take questions.

我要感謝我們團隊的不懈努力以及股東在我們共同前進過程中給予的持續支持。最好的結果就在我們面前，我們的重點堅定不移。接線員，我們現在可以回答問題了。

(Operator Instructions)

（操作員指示）

Jeremy Hamblin, Craig-Hallum Capital Group.

克雷格-哈勒姆資本集團的傑里米·漢布林。

I wanted to start with the Bed Bath conversions. And obviously, a really positive launch here of the first one in Nashville and excited to see how the next few rollout here. But I wanted to get back to -- I think you noted about $100,000 in conversion costs. I wanted to understand if the first one in Brentwood, was it a similar cost, if there was a little bit more invested into that.

我想從 Bed Bath 轉換開始。顯然，我們在納許維爾的首次發布取得了非常積極的成果，並且很高興看到接下來的幾次發布會如何進行。但我想回到——我想你注意到了大約 10 萬美元的轉換成本。我想了解布倫特伍德的第一家工廠的成本是否相似，以及是否投入更多。

And just to get a sense for now that we've got a little bit of time with the opening, and I know it drew quite a bit of media attention certainly at kind of the first couple of weeks, but I wanted to get a sense for how trends are continuing to develop at that store.

現在我們只需要了解一下開業時間，我知道它在開業後的前幾週確實吸引了不少媒體的關注，但我想了解一下這家商店的趨勢是如何發展的。

Yes, I'll take that, Jeremy. So from a CapEx perspective for Brentwood, and remember, all of our store formats are slightly different, which is why we wanted to use Nashville for the initial pilot because it gives me five or six formats where I can really work through the formula of how we begin to convert these nationwide. And so for Brentwood, specifically, the CapEx was actually significantly less.

是的，我接受，傑瑞米。因此，從布倫特伍德的資本支出角度來看，請記住，我們所有的商店格式都略有不同，這就是為什麼我們想使用納什維爾進行初步試點，因為它為我提供了五六種格式，我可以真正通過公式來研究如何在全國範圍內開始轉換這些格式。因此，對於布倫特伍德來說，具體來說，資本支出實際上要少得多。

That store is more newly remodeled within the Kirkland fleet, and so it really was as simple as a sign change on the front of the store and all of the other work we did internally as a team just to remerchandise the store using the existing fixtures and structures of the store.

該商店是 Kirkland 集團內新近改造的商店，因此，這實際上只是在商店前面更改標誌以及我們作為一個團隊在內部完成的所有其他工作一樣簡單，只是使用商店現有的固定裝置和結構來重新銷售商店。

So that one was closer to $30,000 as we get through and look at other stores that might need a flooring change or something more significant to the construction, we still believe we can track in that $100,000 or less range as we convert.

因此，當我們查看其他可能需要更換地板或對建築物進行更重要改造的商店時，這個成本接近 30,000 美元，我們仍然相信，在轉換過程中，我們可以追蹤到 100,000 美元或更低的範圍內。

As I shared in my prepared remarks, the next one opening this Saturday required a little more because we changed out the floors, but again, still came under -- came in well under the $100,000 mark. So from a CapEx perspective, I feel really good about what we've projected in terms of the conversions.

正如我在準備好的演講中分享的那樣，本週六開幕的下一場演出需要更多資金，因為我們更換了地板，但仍然低於——遠低於 100,000 美元的大關。因此，從資本支出的角度來看，我對我們預測的轉換效果感到非常滿意。

And then in terms of results, honestly, we were so thrilled and you noted the national media coverage that we got for the opening. And certainly, it was a good reminder of the power of the brand and how much people love in this Bed Bath & Beyond. And I'm pleased to say the results have continued.

就結果而言，說實話，我們非常激動，而且您也注意到了我們開幕式獲得的全國媒體報道。當然，這很好地提醒了我們這個品牌的力量以及人們對 Bed Bath & Beyond 的喜愛程度。我很高興地說，這項成果仍在持續。

Traffic is up far significant to what a Kirkland store was. New customer acquisition is really strong and the sales are definitely holding in. And so, as we go through the peak season for what would have been in that store this time last year in Kirkland, we'll continue to monitor what mix of seasonal product should be in the store versus the legacy Bed Bath categories. But honestly, all categories are seeing big lifts and really seeing runaway success in things like bedroom and kitchen.

客流量與 Kirkland 商店相比有了顯著的提升。新客戶獲取率確實很高，而且銷售量肯定保持穩定。因此，當我們經歷去年此時柯克蘭商店的旺季時，我們將繼續監控商店中應有的季節性產品組合以及傳統的床上用品類別。但說實話，所有類別都出現了大幅增長，尤其是在臥室和廚房等領域取得了巨大的成功。

Got it, and then just you have a little over 300 locations today. As we go through this process and converting and you talked about a 24-month time frame, what portion of those just over 300 locations do you think ultimately will be converted versus, I would imagine some may best be just closed, but wanted to get a sense for ultimately a couple of years from now where you expect kind of the chain to be and kind of the mix of the various banners?

明白了，那麼今天您就有 300 多個地點了。當我們經歷這個過程和轉換時，您談到了 24 個月的時間框架，您認為這 300 多個地點中有多少部分最終會被轉換，或者，我想有些地點最好是關閉，但想了解一下從現在起的幾年內，您預計連鎖店會是什麼樣子，以及各種橫幅的組合會是什麼樣子？

Yes. I would say we shared this a few times throughout the year and even on the fireside chat, we did with you all, we are going through literally location by location and looking at the real estate, the health of the center, the performance that it has done as a Kirkland store and layering on what we believe the target customer demographics to be for Bed Bath & Beyond and the future of our company and making sure that it matches the criteria that we need to see in real estate, and so we want to be very thoughtful about our choices there. We are currently planning to close about 25 stores that have natural lease expirations in January of 2026.

是的。我想說，我們全年分享過幾次這個主題，甚至在爐邊談話中，我們都和你們分享過，我們正在逐個地點地考察，研究房地產、中心的健康狀況、它作為 Kirkland 商店的表現，並分層分析我們認為 Bed Bath & Beyond 的目標客戶群體以及我們公司的未來，並確保它符合我們在房地產方面需要看到的標準，因此，我們希望選擇非常慎重地做出選擇。我們目前計劃關閉約 25 家租約將於 2026 年 1 月自然到期的商店。

So I suspect as we go forward and really continue navigating the review of real estate as well as making sure that the economics work for each location. I would estimate 250 to 275 of our existing Kirkland stores remaining in the mix over that time, and certainly, we're opportunistically looking for other locations.

因此，我認為，隨著我們繼續前進，並真正繼續對房地產進行審查，並確保每個地點的經濟效益。我估計，在此期間，我們現有的 Kirkland 商店中將有 250 到 275 家留在組合中，當然，我們也在尋找其他地點。

And so as we see success in a market, we want to make sure that we cover both the markets that we're in today as well as the markets that were true to Bed Bath legacy, you know our store fleet really well, Jeremy, and if you look at the Northeast, that is definitely an area where there's less dominance of Kirkland's, and we know that will be likely a very strong area for Bed Bath, and so of our existing fleet, I'd stick with that 250, 275 number over time, but just know that we do believe there's still upside to that in terms of our real estate portfolio geographically.

因此，當我們看到一個市場取得成功時，我們希望確保我們既涵蓋我們今天所在的市場，也涵蓋那些忠於 Bed Bath 傳統的市場，傑里米，你非常了解我們的門市數量，如果你看看東北部，那肯定是 Kirkland 的主導地位較弱的地區，我們知道那很可能是 Bed Bath 非常強大的地區，因此，在我們現有的商店數量中，我會堅持到 250 門家門市，但要知道，就我們的房地產投資組合在地理上而言，我們確實相信這仍然有上升空間。

Great, and then I want to come back to the issue. Obviously, you guys had this terrible tornado that ripped through, it's had significant disruption to the business, but you're also going through this kind of reimagination, this rebirth of the brands, and I wanted to just get a sense for how we should be thinking about the expectations of the store momentum versus your e-com business and when you might expect the e-com portion of your business to see some stabilization. Obviously, we're coming into a key part of the -- from a seasonal perspective, whether you're talking about harvest or obviously, the holiday season.

太好了，然後我想回到這個問題。顯然，你們經歷了這場可怕的龍捲風，這對業務造成了嚴重的破壞，但你們也正在經歷這種重新構想，這種品牌的重生，我只是想了解一下我們應該如何看待商店發展勢頭與電子商務業務的預期，以及何時可以預期你們業務的電子商務部分會趨於穩定。顯然，從季節的角度來看，我們正進入一個關鍵階段，無論你談論的是收穫還是假期。

Do you have a sense for when you think that might be stable? I mean there's just obviously a lot of moving parts that are going on here with the conversions as well that I'm sure taking up quite a bit of attention.

您是否知道什麼時候才可能穩定？我的意思是，顯然這裡有很多活動部件在進行轉換，我確信這些部件會吸引相當多的注意力。

Yes. So I mean, you're spot on in that we have had a struggling e-commerce business for the quarters prior. And obviously, the tornado worsened that impact in Q2 pretty significantly based on the damage to the distribution center and the fact that we were not shipping direct to consumer for several weeks during that quarter.

是的。所以我的意思是，你說得對，我們的電子商務業務在前幾季一直舉步維艱。顯然，龍捲風對第二季度的影響更加嚴重，因為配送中心遭到破壞，而且我們在該季度有數週沒有直接向消費者發貨。

What I would tell you, and we've been talking about this quite a bit this year is, we also want to make sure that the transactions that we're driving towards are the most profitable transactions that we can deliver, and so we're intentionally funding more efforts towards brick-and-mortar as we really try to clean up the balance sheet and improve our liquidity to fund conversions.

我想告訴你的是，我們今年已經多次談論過這個問題，我們還希望確保我們所推動的交易是我們能夠實現的最有利可圖的交易，因此，我們有意向實體店投入更多資金，因為我們確實在努力清理資產負債表，提高流動性以資助轉換。

And so I want to see our owned part of the business, the inventory we own versus the drop ship as well as the ability to drive buy online, pick up in store continue to accelerate as we go into the back half of the year, but we will remain intentional driving more of the brick-and-mortar business. And I think it's okay for the e-commerce business to normalize back down to sort of the declines we were seeing earlier in the year. That's where I'd like to see it go because, again, I don't want to continue to push a channel that is less profitable than what we're able to convert in stores.

因此，我希望看到我們自有的業務部分、我們擁有的庫存與直銷業務以及推動網上購買、店內取貨的能力在進入下半年時繼續加速增長，但我們仍將有意推動更多的實體業務。我認為電子商務業務恢復正常，回到我們今年早些時候看到的下滑狀態是可以的。這就是我希望看到的結果，因為我不想繼續推廣一個利潤低於我們在商店中轉換的利潤的管道。

Got it. Okay. That's helpful. And then you hinted at this, but in terms of just understanding the mechanics behind the sale of the intellectual property, and where kind of the balance sheet stands. I think by my math, is the debt level is about 60 -- just under $68 million, and then it looks like you have about $30 million or so of total liquidity currently? Can you just confirm.

知道了。好的。這很有幫助。然後你暗示了這一點，但只是了解知識產權銷售背後的機制，以及資產負債表的狀況。根據我的計算，我認為債務水平約為 60 - 略低於 6800 萬美元，那麼看起來您目前的總流動資金約為 3000 萬美元左右？能確認一下嗎？

Yes, that's correct. If you look at our ABL as well as our loan with Bed Bath & Beyond.

是的，沒錯。如果您查看我們的 ABL 以及我們與 Bed Bath & Beyond 的貸款。

Okay. Great. And then one other item continues to be a bit of a hot button here. But tariff noise continues to be fairly significant, particularly for your industry. I wanted to get a sense for how we should be thinking about tariff impact here in Q3, Q4? And then there's this investigation about the furniture industry, which I know is not a huge portion of your business, but relevant, certainly and wanted to get a sense for what our expectations should be in the back half of the year in terms of total impact from tariffs?

好的。偉大的。然後，另一件事繼續成為這裡的熱點。但關稅噪音仍然相當大，特別是對於您的行業而言。我想了解我們應該如何看待第三季和第四季的關稅影響？然後還有關於家具行業的調查，我知道這不是你們業務的很大一部分，但肯定是相關的，我想了解一下我們對今年下半年關稅總體影響的預期是什麼？

And then as we think about how this potentially plays out in 2026, which obviously is still a guessing game, but how do you feel about your exposures and potential for more domestic sourcing?

然後，當我們思考這在 2026 年可能如何發展時，這顯然仍然是一個猜謎遊戲，但您對您的曝光度和國內採購的更多潛力有何看法？

Yes. I would say, as we walk into Q3, obviously, that is when we're receiving the goods that were mostly impacted, particularly in China, and the China negotiations, and we shared this pretty early on, our partners really did meet us in the middle. So I feel like between cost negotiations with our Chinese factories, strategic pricing changes within our business that we've mitigated some of that from a China perspective.

是的。我想說，當我們進入第三季時，顯然，那是我們收到受影響最大的貨物的時候，特別是在中國和中國的談判，我們很早就分享了這一點，我們的合作夥伴確實在中間與我們會面。因此，我覺得，透過與中國工廠進行成本談判，以及我們業務內部的策略定價變化，我們已經從中國的角度緩解了一些影響。

Obviously, we recognize there will be some margin pressure, pivoting to sort of what we're in the middle of right now negotiating through the impact in India, those negotiations are a little tougher at the moment. Again, won't be an impact to Q3, but something that we're navigating day by day. And then the interesting piece, I would say, is that as we're converting from Kirkland's, which is 85%, 90% of those goods are our own unique designs, and we're sourcing those directly overseas.

顯然，我們認識到利潤率會面臨一些壓力，轉向我們目前正在進行的談判，以應對印度的影響，這些談判目前有點艱難。再說一次，這不會對第三季度產生影響，但這是我們每天都在努力解決的事情。然後我想說的是，有趣的是，當我們從 Kirkland 轉型時，85% 到 90% 的商品都是我們自己獨特的設計，而且我們直接從海外採購這些商品。

As we're converting to Bed Bath & Beyond stores, we're obviously getting back into the domestic market in a pretty big way. And so I think there's opportunity to continue to balance that dependency as we convert stores, in fact, I am in New York this week, meeting with vendors to begin to buy quantities for the larger chain conversion. And we'll stay close on that, but it's certainly something top of mind.

隨著我們轉型為 Bed Bath & Beyond 商店，我們顯然正在大規模地重返國內市場。因此，我認為在我們轉換商店時有機會繼續平衡這種依賴性，事實上，我本週在紐約，與供應商會面，開始為更大規模的連鎖轉換購買數量。我們會密切關注此事，但這肯定是最重要的事情。

I do expect margin pressures in Q3 just based on the impact from what we've received thus far, but appreciative of the vendor partners for meeting us in the middle. And I think we'll continue to shift away from China as best we can as we move forward.

根據我們迄今為止所受到的影響，我確實預計第三季的利潤率將面臨壓力，但我感謝供應商合作夥伴在中間與我們配合。我認為，隨著我們不斷前進，我們會盡力遠離中國。

Are you able to quantify at all in terms of back half of the year expectation for impact on gross margin?

您能否量化下半年毛利率影響的預期？

Andrea, do you want to give any color on that?

安德里亞，你想對此做出解釋嗎？

Jeremy, I think it's hard to quantify. I would say that you're looking at, in Q2, it was 30 basis points of impact to the business. I would say it will probably be a little bit more than that, probably in the 100 basis point range during Q3. Although in Q4, we're thinking there should be a limited impact. We're really seeing the biggest impact of the tariffs are going to be came in through the inventory coming in through the end of Q2 and the beginning of Q3, which should be selling mostly during the Q3 time period and the beginning of Q4.

傑里米，我認為這很難量化。我想說的是，在第二季度，它對業務的影響是 30 個基點。我想說，這個數字可能會稍微高一點，可能會在第三季達到 100 個基點的範圍內。儘管在第四季度，我們認為影響應該是有限的。我們確實看到關稅的最大影響將透過第二季末和第三季初的庫存體現出來，這些庫存應該主要在第三季和第四季初銷售。

So really expecting the impact to hit that Q3 time period from a pressure on the gross margin, but as we spoke about in both of our highlights, we do plan to continue to strategically liquidate non-go-forward categories and really restructure our stores and get ready for conversion. So I would think about the margin as the liquidation piece potentially having a more impactful on the gross margin than they would necessarily on tariffs as we continue throughout the year.

因此，我們確實預計第三季度的影響將受到毛利率壓力的影響，但正如我們在兩個亮點中提到的那樣，我們確實計劃繼續戰略性地清算非前進類別，並真正重組我們的商店並為轉換做好準備。因此，我認為利潤作為清算部分，對毛利率的影響可能比對關稅的影響更大，因為我們全年都會繼續這樣做。

Fantastic. Last one for me. Just as we look ahead to the conversions and coming back to the cost of that, the time line and having some momentum here and excitement built around bringing the brand back. How many do you think you might be able to do in 2026 versus 2027?

極好的。對我來說是最後一個。正如我們展望轉換並回到成本、時間表以及圍繞品牌回歸而產生的一些動力和興奮。您認為 2026 年和 2027 年您能完成多少個目標？

That is -- that's the golden question right now, Jeremy. We are -- we have just placed buys for 30 conversions for the first quarter of 2026. And we are, again, here in New York this week, chasing opportunistically to be back into the back-to-campus business in a significant way for Bed Bath & Beyond going into the back-to-campus season of 2026.

這就是──這就是現在的黃金問題，傑瑞米。我們剛剛為 2026 年第一季的 30 次轉換進行了購買。本週，我們再次來到紐約，抓住機會，為 Bed Bath & Beyond 重返校園業務，迎接 2026 年的返校季。

So to be determined on the number of stores that will impact, but it is our goal for that to be wide and as many stores as we can influence going into that important season. And I think as I look back at the Bed Bath & Beyond history, the Q2 benefit that we could see compared to the Kirkland's seasonality is really significant. And so if I'm flashing forward to this time next year, I really see us being able to level out how the quarters play out and really begin to improve our profitability and our revenue in the first half of the year.

因此，要確定受影響的商店數量，但我們的目標是影響範圍更廣，並且在進入這個重要季節時能夠影響盡可能多的商店。我認為，當我回顧 Bed Bath & Beyond 的歷史時，與 Kirkland 的季節性相比，我們可以看到 Q2 的收益確實非常顯著。因此，如果我展望明年這個時候，我真的看到我們能夠平衡各季度的業績，並在上半年真正開始提高我們的獲利能力和收入。

So it is my goal to be in as many stores as possible based on the inventory that I can get over the next six to eight weeks. So a lot of that will become really crystal clear as we're finishing out Q3 because the buys will need to place for back-to-campus of next year really need to be solved by the end of October.

因此，我的目標是根據未來六到八週內可以獲得的庫存，盡可能多地進駐商店。因此，當我們結束第三季時，許多問題將變得非常清晰，因為明年返校所需的採購確實需要在 10 月底之前解決。

Got it, and best wishes.

明白了，祝一切順利。

Thank you, Jeremy.

謝謝你，傑瑞米。

At this time, this completes our question-and-answer session and concludes today's call. Thank you for your participation. You may now disconnect your lines.

至此，我們的問答環節就結束了，今天的電話會議也結束了。感謝您的參與。現在您可以斷開線路了。