The Brand House Collective, Inc. ( TBHC ) shares are trading lower on Tuesday.

The company reported second-quarter adjusted earnings per share of a 90 cent loss, missing the analyst consensus estimate of 74 cents. Quarterly sales of $75.788 million (down 12.2% year over year), missed the Street view of $77.632 million.

TBHC is taking a hit from negative sentiment. Track the latest developments here.

The sales were driven by a 9.7% decline in consolidated comparable sales and a decline in store count of approximately 5%.

Also Read: Ferguson Forecasts Rising Margins As CEO Stresses Investment In Growth Areas

The company said the consolidated comparable sales were inclusive of a comparable store sales increase of 0.4% and an e-commerce decline of 38.5% compared to the second quarter of fiscal 2024.

Gross profit declined to $12.4 million from $17.7 million a year earlier. Gross margin narrowed to 16.3% of net sales, down from 20.5% in the prior-year quarter.

On Sept. 15, the company sold the Kirkland’s Home intellectual property to Bed Bath & Beyond, Inc. ( BBBY ) for $10 million and closed a $20 million expansion of the existing credit agreement with the company to support current operations as well as store conversion and channel expansion plans.

Amy Sullivan, CEO of Brand House Collective ( TBHC ), said, “Our Q2 results reflect two major events that weighed heavily on the quarter: the tornado damage at our distribution center and our deliberate decision to liquidate select inventory ahead of expanding Bed Bath & Beyond ( BBBY ) assortments.”

In total, the company incurred expenses of $2 million related to damage caused by the tornado that damaged the company’s distribution center in Jackson, Tennessee, on May 20.

Adjusted EBITDA in the second quarter of 2025 was a loss of $14.3 million compared to a loss of $10.2 million in the prior year quarter.

As of Aug. 2, inventory was $81.7 million, compared to inventory of $92.8 million in the year-ago period. The company had a cash balance of $3.6 million, with $41.5 million of outstanding debt.

TBHC Price Action: Brand House Collective ( TBHC ) shares are trading lower by 4.92% to $1.84 at publication on Tuesday.

Read Next:

Google Reveals $6.8 Billion UK AI Drive As Trump Lands For High-Stakes Talks