The Brand House Collective (KIRK) Status Update summary

Financial performance and transformation progress

• Preliminary FY 2024 sales reached $441 million with a $2 million adjusted EBITDA loss; Q4 net sales were about $148 million, marking the fifth consecutive quarter of positive brick-and-mortar comps and the second consecutive quarter of positive EBITDA.

• Brick-and-mortar comparable store sales grew 1.6%, while e-commerce sales declined 7.9% year-over-year in Q4 FY24.

• Expected Q4 net income of ~$7.9 million, diluted EPS of ~$0.50, and adjusted EBITDA of ~$12.0 million.

• As of February 17, 2025, outstanding borrowings and letters of credit totaled $41.9 million, with $8.2 million in available credit and $8.5 million in debt to Beyond, Inc.

• Significant progress has been made in restoring brand health and reactivating lapsed customers, with a focus on customer experience and product curation.

Strategic partnership and capital structure

• Beyond, Inc. invested $25 million, becoming a 40% shareholder, with $16.5 million in equity and an $8.5 million term loan.

• Share count increased from 15.8 million to approximately 22 million post-transaction.

• Proceeds were used to exit Gordon Brothers from the capital structure and pay down the ABL, with over $8 million in current availability.

• The partnership is expected to drive an omnichannel strategy for Bed Bath, buybuy BABY, and Overstock.

Multi-brand strategy and growth opportunities

• The business is shifting from a single-banner brand to a multi-brand portfolio, providing new growth avenues.

• Plans to open up to five Bed Bath & Beyond stores in 2025, with store design and vendor negotiations underway.

• buybuy BABY may be integrated into Bed Bath & Beyond stores or operate as standalone locations.

• Overstock's progress is promising, with potential for omnichannel expansion and outlet strategies.

• Each brand will have a unique role, with opportunities for cross-brand loyalty and credit programs.