Brand House Collective Inc's Business Segments

Kirkland's, Inc. is a specialty retailer of home décor and furnishings operating 317 stores across 35 U.S. states and an e-commerce website under the Kirkland's Home brand. Founded in 1966 and incorporated in 1981, the company offers a selection of home décor and furnishings. In October 2024, Kirkland's entered a strategic partnership with Beyond, Inc., which includes a $17 million term loan credit agreement, an $8 million subscription agreement, a seven-year collaboration agreement, and a trademark license agreement. This partnership enables Kirkland's to operate small format stores and shops-within-a-shop under Beyond-owned trademarks such as Bed Bath & Beyond, Buy Buy Baby, and Overstock, and to sell Bed Bath & Beyond branded merchandise in existing Kirkland's stores. Kirkland's business strategy focuses on offering seasonally relevant home décor, furnishings, and gifts with curated assortments. The company emphasizes customer engagement, product innovation, omni-channel shopping experiences, and operational efficiency. In fiscal 2025, Kirkland's plans to optimize its product mix, enhance e-commerce, leverage the Beyond partnership by opening or converting stores to Beyond brands, and close underperforming locations to improve profitability and shareholder value.

The Company operates and reports financial results as a single operating and reportable segment, encompassing its store locations and e-commerce operations. Its integrated omni-channel strategy treats e-commerce sales as an extension of physical stores. The President and Chief Executive Officer, serving as the chief operating decision maker (CODM), evaluates performance based on net loss reported in the consolidated statements of operations and reviews net income (loss) monthly for segment assessment. Expense categories provided to the CODM align with those in the consolidated statements of operations. Segment assets correspond to total assets reported on the consolidated balance sheets. The accounting policies for this segment are consistent with those outlined in the Summary of Significant Accounting Policies in "Note 1 — Description of Business and Significant Accounting Policies."