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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of Earliest Event Reported):
December 16, 2025
 
The Brand House Collective, Inc.
 
 
(Exact name of registrant as specified in its charter)
 
Tennessee
 
000-49885
 
62-1287151
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)
         
5310 Maryland Way, Brentwood, Tennessee
     
37027
(Address of principal executive offices)
     
(Zip Code)
 
Registrant’s telephone number, including area code:
 
615-872-4800
 
Kirkland’s, Inc.

(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
TBHC
NASDAQ Global Select Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 






 
Item 2.02 Results of Operations and Financial Condition.
 
On December 16, 2025, the Company issued a press release reporting its results of operations for the third fiscal quarter ended November 1, 2025 (the “Press Release”).
 
A copy of the Press Release is attached hereto as Exhibit 99.1, and is being furnished, not filed, under Item 2.02 of this Current Report on Form 8-K.
 
Item 9.01 Financial Statements and Exhibits.
 
(d) Exhibits
 
Exhibit
Number
 
Description
     
 
     
104
 
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 






 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
The Brand House Collective, Inc.
 
 
 
 
December 16, 2025
 
By:
/s/ Michael W. Sheridan
 
 
 
Name: Michael W. Sheridan
 
 
 
Title: Senior Vice President, General Counsel, and Corporate Secretary
 
 
EX-99.1 2 ex_863208.htm EXHIBIT 99.1 ex_863208.htm

EXHIBIT 99.1

bhc-1200x1200black.jpg

 

THE BRAND HOUSE COLLECTIVE REPORTS THIRD QUARTER FISCAL 2025 RESULTS

 

 

NASHVILLE, Tenn. (December 16, 2025) — The Brand House Collective, Inc. (Nasdaq: TBHC) (“Brand House Collective” or the “Company”), formerly Kirkland’s, Inc., announced its financial results for the 13-week and 39-week periods ended November 1, 2025.

 

Amy Sullivan, CEO of Brand House Collective, said, “Our inventory optimization efforts are strategically supporting our store conversion program, creating space for expanded Bed Bath & Beyond assortments as we transform our retail footprint. The successful conversion of our Tennessee locations to the Bed Bath & Beyond Home format demonstrates the progress we're making in this evolution. Looking ahead, the pending merger with Bed Bath & Beyond will combine our complementary strengths and will enable us to build a powerful omnichannel platform for sustained growth. We are confident this combination will strengthen our comprehensive home retail offering, unlock meaningful operational and financial synergies, and deliver increased earnings power with enhanced long-term growth potential for all shareholders.”

 

Third Quarter 2025 Financial Results

 

 

Net sales in the third quarter of 2025 were $103.5 million, compared to $114.4 million in the prior year quarter, driven by a 7.4% decline in consolidated comparable sales and a decline in store count of approximately 6%. Consolidated comparable sales is inclusive of a comparable store sales increase of 1.7% and e-commerce decline of 34.6% compared to the third quarter of fiscal 2024.

 

Gross profit was $21.1 million, or 20.4% of net sales, compared to $32.1 million, or 28.1% of net sales in the prior year quarter. The decline is primarily a result of a decline in merchandise margin and the deleverage of store occupancy costs on lower sales. The decline in merchandise margin was primarily due to liquidation activity to optimize inventory ahead of expanding Bed Bath & Beyond assortments and incremental tariff costs.

 

 
1

 

 

  Operating expenses in the third quarter of 2025 were $23.1 million, or 22.3% of net sales, compared to $34.5 million, or 30.2% of net sales in the prior year quarter. The reduction in expenses to prior year was driven by reduced marketing spend and lower cost for self-insured employee benefits, as well as a $10.0 million gain on the sale of the Kirkland’s brand to Beyond.
  Net loss in the third quarter of 2025 was $3.7 million, or a loss of $0.16 per diluted share, compared to $7.7 million, or a loss of $0.59 per diluted share in the prior year quarter. Diluted weighted average shares outstanding in the third quarter of 2025 were approximately 22.5 million compared to 13.1 million in the prior year quarter, mainly due to Beyond acquiring approximately 8.9 million shares of common stock in the Company.
  Adjusted net loss* in the third quarter of 2025 was $13.6 million, or an adjusted loss of $0.61 per diluted share, compared to adjusted net loss of $3.8 million, or an adjusted loss of $0.29 per diluted share in the prior year quarter.
 

Adjusted EBITDA* in the third quarter of 2025 was a loss of $9.9 million compared to income of $0.5 million in the prior year quarter.

  During the period, the Company closed three Kirkland’s Home stores and converted 3 Kirkland’s Home stores to Bed Bath & Beyond Home stores to end the quarter with 303 Kirkland’s Home stores and 3 Bed Bath & Beyond Home stores.

 

Balance Sheet

 

  As of November 1, 2025, inventory was $88.9 million compared to inventory of $111.2 million as of November 2, 2024.
  As of November 1, 2025, the Company had a cash balance of $6.5 million, with $61.6 million of outstanding debt and $5.8 million in outstanding letters of credit under its senior secured revolving credit facility, and $13.7 million in debt to Beyond, a related party and 40% owner of the Company. As of November 1, 2025, the Company had $1.0 million of availability for borrowing under the revolving credit facility, after the minimum required excess availability covenant.
  As of December 15, 2025, the Company had $20.7 million of outstanding debt and $5.8 million of outstanding letters of credit under its revolving credit facility with $12.2 million of availability, after the minimum required excess availability covenant, and $23.7 million in term loans to Beyond with $20.0 million available from Beyond.
  Availability under the Company’s 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 the Company’s back-half sales plans, the Company’s borrowing capacity increases correspondingly.

 

*Non-GAAP financial measures. Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP Net Income to Adjusted EBITDA” and “Reconciliation of GAAP Net Income to Adjusted Net Income” for more information.

 

 

2

Conference Call

 

Given the pending acquisition by Bed Bath & Beyond, Inc. the Company will not conduct an earnings call related to the Q3 results.

 

3

 

About The Brand House Collective, Inc.

 

The Brand House Collective, Inc., formerly Kirkland’s Inc., is a multi-brand merchandising, supply chain and retail operator, managing a portfolio of iconic home and family brands including Kirkland’s Home and Bed Bath & Beyond Inc.’s Bed Bath & Beyond Home, Bed Bath & Beyond, buybuy Baby, and Overstock. Currently operating more than 300 stores across 35 states as well as e-commerce sites, www.kirklands.com and www.bedbathandbeyondhome.com, the Company offers distinctive brand experiences providing curated, high-quality product assortments for every room, every moment, and for every budget. More information can be found at www.kirklands.com.

 

Forward-Looking Statements

 

Except for historical information contained herein, certain statements in this release, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to the finalization of the Company’s quarterly financial and accounting procedures. Forward-looking statements deal with potential future circumstances and developments and are, accordingly, forward-looking in nature. You are cautioned that such forward-looking statements, which may be identified by words such as "anticipate," "believe," "expect," "estimate," "intend," "plan," "seek," "may," "could," "strategy," and similar expressions, involve known and unknown risks and uncertainties, many of which are outside of the Company’s control, which may cause the Company's actual results to differ materially from forecasted results. Those risks and uncertainties include, among other things, risks associated with the effect of the transactions entered into with Beyond, including the proposed merger with Beyond (the “Transactions”) on the Company’s business relationships; the timing and likelihood of, and any conditions or requirements imposed in connection with, obtaining required shareholder or regulatory approval of the proposed merger (and the risk that such approvals may result in the imposition of conditions that could adversely affect the expected benefits of the proposed merger); the timing and likelihood of receiving the required lender consent from Bank of America, N.A., which is subject to the refinancing or repayment of the Company's existing asset-based loan; delays in closing the proposed merger or the possibility of non-consummation of the proposed merger; the ability to successfully integrate the Company’s business with Beyond following the closing of the proposed merger; operating results and business generally; unexpected costs, charges or expenses resulting from the Transactions; potential litigation relating to the Transactions that could be instituted against Beyond, the Company or their affiliates’ respective directors, managers or officers, including the effects of any outcomes related thereto; continued availability of capital and financing; the ability to obtain the various synergies envisioned between the Company and Beyond; the ability of the Company to successfully open new stores or rebrand or operate existing Kirkland’s Home stores under a Bed Bath & Beyond Home or other licensed brand; the ability of the Company to successfully market its products to new customers and expand through new e-commerce platforms and to implement its plans, forecasts and other expectations with respect to its business after the completion of the Transactions and realize additional opportunities for growth and innovation; risks associated with the Company's liquidity including cash flows from operations and the amount of borrowings under the secured revolving credit facility; the fact that our independent registered public accounting firm’s report for the year ended February 1, 2025 is qualified as to our ability to continue as a going concern; the Company’s ability to successfully implement cost savings and other strategic initiatives intended to improve operating results and liquidity positions; the Company’s actual and anticipated progress towards its short-term and long-term objectives including its multi-brand and omni-channel strategy; the risk that natural disasters, pandemic outbreaks, global political events, war and terrorism could impact the Company’s revenues, inventory and supply chain; the continuing consumer impact of inflation and countermeasures, including high interest rates; the effectiveness of the Company’s marketing campaigns; risks related to changes in U.S. policy related to imported merchandise, particularly with regard to the impact of tariffs on goods imported from China and strategies undertaken to mitigate such impact; the Company’s ability to retain its senior management team; volatility in the price of the Company’s common stock, the competitive environment in the home décor industry in general and in the Company's specific market areas; inflation, fluctuations in cost and availability of inventory; increased transportation costs and potential interruptions in supply chain, distribution systems and delivery network, including the Company’s e-commerce systems and channels; the ability to control employment and other operating costs; availability of suitable retail locations and other growth opportunities; disruptions in information technology systems including the potential for security breaches of the Company's information or its customers’ information, seasonal fluctuations in consumer spending, and economic conditions in general. Those and other risks are more fully described in the Company's filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K filed on May 2, 2025, as amended on May 30, 2025, and subsequent reports. Forward-looking statements included in this release are made as of the date of this release. Any changes in assumptions or factors on which such statements are based could produce materially different results. Except as required by law, the Company disclaims any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

 

4

 

THE BRAND HOUSE COLLECTIVE, INC.

UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

 

   

13-Week Period Ended

 
   

November 1,

   

November 2,

 
   

2025

   

2024

 

Net sales

  $ 103,462     $ 114,423  

Cost of sales

    82,342       82,288  

Gross profit

    21,120       32,135  

Operating expenses:

               

Compensation and benefits

    19,306       19,409  

Other operating expenses

    13,256       14,275  

Depreciation (exclusive of depreciation included in cost of sales)

    551       843  

Gain on sale of internally developed intangible assets

    (10,000 )      

Asset impairment

          1  

Total operating expenses

    23,113       34,528  

Operating loss

    (1,993 )     (2,393 )

Interest expense

    1,738       1,719  

Loss on extinguishment of debt

          3,338  

Other income

    (49 )     (126 )

Loss before income taxes

    (3,682 )     (7,324 )

Income tax expense

    23       356  

Net loss

  $ (3,705 )   $ (7,680 )

Loss per share:

               

Basic

  $ (0.16 )   $ (0.59 )

Diluted

  $ (0.16 )   $ (0.59 )

Weighted average shares outstanding:

               

Basic

    22,461       13,116  

Diluted

    22,461       13,116  

 

5

 

THE BRAND HOUSE COLLECTIVE, INC.

UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

 

   

39-Week Period Ended

 
   

November 1,

   

November 2,

 
   

2025

   

2024

 

Net sales

  $ 260,754     $ 292,465  

Cost of sales

    206,981       215,602  

Gross profit

    53,773       76,863  

Operating expenses:

               

Compensation and benefits

    54,987       57,348  

Other operating expenses

    38,165       39,977  

Depreciation (exclusive of depreciation included in cost of sales)

    1,802       2,729  

Gain on sale of internally developed intangible assets

    (10,000 )      

Asset impairment

    72       32  

Total operating expenses

    85,026       100,086  

Operating loss

    (31,253 )     (23,223 )

Interest expense

    4,550       4,266  

Loss on extinguishment of debt

          3,338  

Other income

    (172 )     (362 )

Loss before income taxes

    (35,631 )     (30,465 )

Income tax expense

    77       549  

Net loss

  $ (35,708 )   $ (31,014 )

Loss per share:

               

Basic

  $ (1.60 )   $ (2.38 )

Diluted

  $ (1.60 )   $ (2.38 )

Weighted average shares outstanding:

               

Basic

    22,338       13,052  

Diluted

    22,338       13,052  

 

6

 

THE BRAND HOUSE COLLECTIVE, INC.

UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands)

 

   

November 1,

   

February 1,

   

November 2,

 
   

2025

   

2025

   

2024

 

ASSETS

                       

Current assets:

                       

Cash and cash equivalents

  $ 6,457     $ 3,820     $ 6,756  

Inventories, net

    88,902       81,899       111,219  

Prepaid expenses and other current assets

    10,468       5,585       6,494  

Total current assets

    105,827       91,304       124,469  

Property and equipment, net

    17,780       22,062       23,838  

Operating lease right-of-use assets

    102,532       121,229       123,916  

Other assets

    3,090       7,593       7,591  

Total assets

  $ 229,229     $ 242,188     $ 279,814  

LIABILITIES AND SHAREHOLDERS’ DEFICIT

                       

Current liabilities:

                       

Accounts payable

  $ 55,040     $ 43,935     $ 61,177  

Accrued expenses and other liabilities

    21,417       20,183       23,830  

Operating lease liabilities

    35,650       39,355       38,541  

Related party debt, net

    1,538              

Current debt, net

          49,199        

Total current liabilities

    113,645       152,672       123,548  

Operating lease liabilities

    77,589       95,085       99,222  

Related party debt, net

    16,542              

Long-term debt, net

    61,602       10,003       80,397  

Other liabilities

    3,892       3,445       3,779  

Total liabilities

    273,270       261,205       306,946  

Shareholders’ deficit

    (44,041 )     (19,017 )     (27,132 )

Total liabilities and shareholders’ deficit

  $ 229,229     $ 242,188     $ 279,814  

 

7

 

THE BRAND HOUSE COLLECTIVE, INC.

UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

 

   

39-Week Period Ended

 
   

November 1,

   

November 2,

 
   

2025

   

2024

 

Cash flows from operating activities:

               

Net loss

  $ (35,708 )   $ (31,014 )

Adjustments to reconcile net loss to net cash used in operating activities:

               

Depreciation of property and equipment

    6,162       7,476  

Amortization of debt issuance and original issue discount costs

    1,473       418  

Asset impairment

    72       32  

Loss on sale of property and equipment

    47       15  

Gain on sale of internally developed intangible assets

    (10,000 )      

Stock-based compensation expense

    323       809  

Loss on extinguishment of debt

          3,338  

Changes in assets and liabilities:

               

Inventories, net

    (7,003 )     (37,129 )

Prepaid expenses and other current assets

    (4,883 )     713  

Accounts payable

    11,185       15,209  

Accrued expenses

    100       1,147  

Operating lease assets and liabilities

    (2,504 )     736  

Other assets and liabilities

    4,747       (784 )

Net cash used in operating activities

    (35,989 )     (39,034 )
                 

Cash flows from investing activities:

               

Proceeds from sale of property and equipment

    24       20  

Proceeds from sale of internally developed intangible assets

    10,000        

Capital expenditures

    (1,927 )     (1,653 )

Net cash provided by (used in) investing activities

    8,097       (1,633 )
                 

Cash flows from financing activities:

               

Borrowings on revolving line of credit

    220,533       40,100  

Repayments on revolving line of credit

    (201,931 )     (9,100 )

Borrowings on term loans

          10,000  

Repayments on FILO term loan

          (10,000 )

Payment of prepayment penalties on extinguishment of debt

          (2,638 )

Proceeds from Beyond transaction

    5,000       17,000  

Payments of debt and equity issuance costs

    (1,018 )     (1,693 )

Cash used in net share settlement of stock options and restricted stock units

    (55 )     (51 )

Proceeds from issuance of common stock

    8,000        

Net cash provided by financing activities

    30,529       43,618  
                 

Cash and cash equivalents:

               

Net increase

    2,637       2,951  

Beginning of the period

    3,820       3,805  

End of the period

  $ 6,457     $ 6,756  
                 

Supplemental schedule of non-cash activities:

               

Non-cash accruals for purchases of property and equipment

  $ 465     $ 516  

Non-cash accruals for debt and equity issuance costs

    1,004       650  
                 

Conversion of convertible note, accrued interest and unamortized debt issuance costs into common stock

  $ 6,705        

Common stock issued in exchange for equity issuance costs

    574        

 

8

 

Non-GAAP Financial Measures

 

To supplement our unaudited consolidated condensed financial statements presented in accordance with generally accepted accounting principles (“GAAP”), this earnings release contains certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted operating loss, adjusted net loss and adjusted diluted loss per share. These measures are not in accordance with, and are not intended as alternatives to, GAAP financial measures. The Company uses these non-GAAP financial measures internally in analyzing our financial results and believes that they provide useful information to analysts and investors, as a supplement to GAAP financial measures, in evaluating the Company’s operational performance.

 

The Company defines EBITDA as net loss before income tax expense, interest expense, other income, the loss on extinguishment of debt, and depreciation. Adjusted EBITDA is defined as EBITDA adjusted to remove the gain on sale of internally developed intangible assets (as this does not represent a normal recurring gain), asset impairment, stock-based compensation expense (due to the non-cash nature of this expense), severance charges (as it fluctuates based on the needs of the business and does not represent a normal recurring operating expense), tornado related costs (as these do not represent a normal recurring expenses), and any financing related legal or professional fees that, due to their nature, did not qualify for capitalization as deferred debt or equity issuance costs.

 

Adjusted operating loss is defined as operating loss adjusted for the gain on sale of internally developed intangible assets, asset impairment, stock-based compensation expense, severance charges, tornado related costs, and financing related legal or professional fees not qualifying for capitalization. The Company defines adjusted net loss as net loss adjusted for gain on sale of internally developed intangible assets, asset impairment, stock-based compensation expense, severance charges, tornado related costs, the loss on extinguishment of debt, financing related legal or professional fees not qualifying for capitalization, and the related tax adjustments. The Company defines adjusted loss per diluted share as adjusted net loss divided by weighted average diluted share count.

 

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Each non-GAAP financial measure has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.

 

The following table shows an unaudited non-GAAP measure reconciliation of net loss to EBITDA and adjusted EBITDA (in thousands) for the periods indicated:

 

   

13-Week Period Ended

   

39-Week Period Ended

 
   

November 1, 2025

   

November 2, 2024

   

November 1, 2025

   

November 2, 2024

 

Net loss

  $ (3,705 )   $ (7,680 )   $ (35,708 )   $ (31,014 )

Income tax expense

    23       356       77       549  

Interest expense

    1,738       1,719       4,550       4,266  

Loss on extinguishment of debt

          3,338             3,338  

Other income

    (49 )     (126 )     (172 )     (362 )

Depreciation

    2,012       2,339       6,162       7,476  

EBITDA

    19       (54 )     (25,091 )     (15,747 )

Adjustments:

                               

Gain on sale of internally developed intangible assets(1)

    (10,000 )           (10,000 )      

Asset impairment(2)

          1       72       32  

Stock-based compensation expense(3)

    2       253       323       809  

Beyond transaction costs not subject to capitalization(4)

    75       266       304       266  

Severance charges(5)

                283       390  

Tornado expenses, net(7)

                1,974        

Total adjustments

    (9,923 )     520       (7,044 )     1,497  

Adjusted EBITDA

  $ (9,904 )   $ 466     $ (32,135 )   $ (14,250 )

 

9

 

The following table shows an unaudited non-GAAP measure reconciliation of operating loss to adjusted operating loss (in thousands) for the periods indicated: 

 

   

13-Week Period Ended

   

39-Week Period Ended

 
   

November 1, 2025

   

November 2, 2024

   

November 1, 2025

   

November 2, 2024

 

Operating loss

  $ (1,993 )   $ (2,393 )   $ (31,253 )   $ (23,223 )

Adjustments:

                               

Gain on sale of internally developed intangible assets(1)

    (10,000 )           (10,000 )      

Asset impairment(2)

          1       72       32  

Stock-based compensation expense(3)

    2       253       323       809  

Beyond transaction costs not subject to capitalization(4)

    75       266       304       266  

Severance charges(5)

                283       390  

Tornado expenses, net(7)

                1,974        

Total adjustments

    (9,923 )     520       (7,044 )     1,497  

Adjusted operating loss

  $ (11,916 )   $ (1,873 )     (38,297 )     (21,726 )

 

The following table shows an unaudited non-GAAP measure reconciliation of net loss and diluted loss per share to adjusted net loss and adjusted diluted loss per share (in thousands, except per share data) for the periods indicated: 

 

   

13-Week Period Ended

   

39-Week Period Ended

 
   

November 1, 2025

   

November 2, 2024

   

November 1, 2025

   

November 2, 2024

 

Net loss

  $ (3,705 )   $ (7,680 )   $ (35,708 )   $ (31,014 )

Adjustments:

                               

Gain on sale of internally developed intangible assets(1)

    (10,000 )           (10,000 )      

Asset impairment(2)

          1       72       32  

Stock-based compensation expense(3)

    2       253       323       809  

Beyond transaction costs not qualifying for capitalization(4)

    75       266       304       266  

Severance charges(5)

                283       390  

Loss on extinguishment of debt(6)

          3,338             3,338  

Tornado expenses, net(7)

                1,974        

Total adjustments

    (9,923 )     3,858       (7,044 )     4,835  

Tax benefit of adjustments

    8       2       28       20  

Total adjustments, net of tax

    (9,915 )     3,860       (7,016 )     4,855  

Adjusted net loss

  $ (13,620 )   $ (3,820 )   $ (42,724 )   $ (26,159 )
                                 

Diluted loss per share

  $ (0.16 )   $ (0.59 )   $ (1.60 )   $ (2.38 )

Adjusted diluted loss per share

  $ (0.61 )   $ (0.29 )   $ (1.91 )   $ (2.00 )
                                 

Diluted weighted average shares outstanding

    22,461       13,116       22,338       13,052  

(1)

Internally developed intangible assets refers to the Kirkland's brand that was sold to Beyond for a purchase price of $10.0 million in the third quarter.

(2) Asset impairment charges are related primarily to property and equipment.
(3)

Stock-based compensation expense includes amounts amortized to expense related to equity incentive plans.

(4)

Consulting and legal fees incurred relating to the Company’s transactions with Beyond that, due to their nature, did not qualify for capitalization as deferred debt or equity issuance costs. Given the magnitude and scope of these strategic transactions, the Company considers the incremental consulting and legal fees incurred not reflective of the ongoing costs to operate its business.

(5)

Severance charges include expenses related to severance agreements and permanent store closure compensation costs.

(6) Loss on extinguishment of debt includes expenses related to the extinguishment of the FILO Term Loan including a $2.6 million prepayment penalty and the write off of the remaining unamortized debt issuance costs.
(7)

Tornado related costs include the write-off of damaged inventory, a component of cost of sales, and expenses to move product to temporary storage and professional fees to secure and repair the damage caused by the tornado that damaged the Company’s distribution center in Jackson, Tennessee on May 20, 2025 which are recorded in other operating expenses, net of insurance proceeds.

 

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