Swedish home furnishings retailer Ikea advanced efforts to take control over its delivery fulfillment network by acquiring U.S.-based logistics technology company Locus on Tuesday. Join the leaders shaping freight’s future atF3: Future of Freight Festival, Oct 21-22.Network with the industry’s best and discover what’s next. Register now! Ingka Group, the largest retailer for Ikea, acquired the AI-powered platform for an undisclosed sum. (Locus raised $50 million in funding in 2021, pushing its valuation ...

Lenskart Solutions and Wakefit Innovations have gained a green light from the Securities and Exchange Board of India (SEBI) to proceed with their initial public offerings (IPOs). Lenskart, an eyewear retailer, first submitted its IPO paperwork to SEBI in July 2025. The offering aims to raise Rs21.5bn ($242.2m) through a fresh issuance of shares, complemented by an offer for sale (OFS) in which promoters and early investors plan to offload up to 132.2 million shares. Key selling shareholders in the OFS i ...

Recurve Capital, an investment management company, released its second-quarter 2025 investor letter. Recurve had a strong second quarter. A copy of the letter can be downloaded here. In Q2 2025, the fund returned +31% gross compared to +10.6% returns for the S&P 500 and 17.8% returns for the Nasdaq. YTD, the fund returned +14.8% gross and +12% net. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025. In its second-quarter 2025 investor letter, Recurve Capital highlight ...

Core Insights - At Home is emerging from Chapter 11 bankruptcy with a significantly reduced debt load and most of its store locations intact, having closed approximately 30 stores while maintaining over 230 stores across 39 states [3][6] - The company has received approval for its reorganization plan, which will eliminate nearly all of its $2 billion in funded debt and provide access to an asset-based loan of about $500 million [6] - The retailer's operations have continued during bankruptcy, including the launch of an exclusive home collection by Real Simple, indicating a focus on maintaining business continuity [5][6] Industry Context - U.S. trade policies, particularly the proposed 30% tariff on upholstered furniture and other home goods, are creating challenges for retailers like At Home, contributing to consumer uncertainty [4][6] - Despite these challenges, furniture sales showed a growth of nearly 3% in August, suggesting a recovery from the post-pandemic slowdown, although concerns about tariffs are influencing consumer spending behavior [4][5] - At Home sources about 90% of its products from overseas, making it particularly vulnerable to tariff-related disruptions [6]

Core Insights - Wayfair's business and stock have shown a significant recovery after being heavily impacted by the post-pandemic shift, with the stock price increasing by 339% since its low in April [5][6]. Company Performance - During the pandemic, Wayfair experienced a surge in e-commerce sales due to increased demand for home furnishings as consumers shifted to online shopping [2]. - After the pandemic, Wayfair faced challenges due to overinvestment and a decline in demand, resulting in revenue remaining flat and well below pandemic peaks [3]. - The company reported flat revenue of $2.7 billion in the first quarter, but adjusted earnings per share improved to $0.10 from a loss of $0.32 year-over-year [7]. - In the second quarter, Wayfair achieved a 6% revenue increase to $3.3 billion, surpassing estimates, with adjusted earnings per share rising from $0.47 to $0.87 [8]. Market Strategy - Wayfair is gaining market share and expanding into brick-and-mortar retail by opening large-scale stores, with plans for additional locations [9][10]. - The company opened a new store in the Chicago suburbs and has three more planned, including a significant 140,000 square foot store in Denver [10]. Industry Context - The home furnishings sector has faced challenges due to a sluggish housing market, which typically affects furniture purchases [12]. - Investors are optimistic that potential interest rate cuts from the Federal Reserve could stimulate a recovery in the housing market and benefit companies like Wayfair [12]. Valuation and Future Outlook - Despite recent momentum, Wayfair still has a long way to go to regain pre-pandemic growth rates, facing competition from major players like Amazon and IKEA [11]. - The stock is currently trading at a forward P/E above 40, raising concerns about its valuation without faster revenue growth [13]. - The potential for stronger growth exists if the housing market improves, but the current rally may have limitations [13].

Tariff Announcements - Former President Donald Trump announced new tariffs, including a 100% tariff on imported branded and patented pharmaceutical products, a 50% tariff on kitchen cabinets and bathroom vanities, a 30% tax on upholstered furniture, and a 25% levy on heavy trucks, effective October 1st [2][3][4] Pharmaceutical Sector Impact - Asian pharmaceutical stocks experienced declines, with Japan's Topix pharmaceutical index down 1% to 1.2%, and South Korea's SK Biopharmaceuticals shares falling 2.7% to 3.6% [3][4] - In India, the Nifty Pharma index plunged 1.81% to 2.45%, with Sun Pharma losing 2% to 2.55% and Wockhardt tumbling over 9% [4] - European pharmaceutical shares had a muted reaction, with Novo Nordisk slipping 1.9% to 3.49%, while Novartis stated the tariffs would have "no impact" due to a $23 billion investment in U.S. infrastructure [5] U.S. Pharmaceutical Companies - American pharmaceutical companies saw gains, with Eli Lilly rising 0.9% to 1.3% and Pfizer adding 0.2%, benefiting from the 100% tariff on imported drugs [6] Home Goods Sector Reaction - The home furnishings sector reacted negatively, with RH shares falling 2.6% to 5.4% and Wayfair initially slipping 3.5% to 6% but later recovering to a 0.9% gain [7][8] - American-based furniture manufacturers like La-Z-Boy and Ethan Allen Interiors saw gains due to the tariffs [8] Heavy Trucks Sector - The 25% tariff on heavy truck imports benefited American truck maker Paccar, whose shares surged 5% to 6%, while European counterparts like Daimler Truck and Traton saw declines [9] Broader Market Reaction - Despite the tariff news, the broader U.S. markets showed resilience, with the Dow Jones Industrial Average gaining 369 points (+0.8%) and the S&P 500 rising 36 points (+0.56%) [11] - The overall market reaction was described as "modest," indicating that markets have adapted to tariff announcements over time [11][12]

Financial Data and Key Metrics Changes - For the second quarter, net sales were $75.8 million compared to $86.3 million in the prior year quarter, reflecting a decrease driven by a 9.7% decline in comparable sales and a 5% decline in store count [11][12] - Gross margin decreased by 410 basis points to 16.3% of sales, primarily due to a decline in merchandise margin and occupancy deleverage [12][13] - Net loss was $19.4 million for the quarter compared to $14.5 million in the prior year quarter, with an adjusted net loss of $17.8 million compared to $13.9 million in the prior year [15] Business Line Data and Key Metrics Changes - E-commerce sales experienced a decline of 38.5% in comparable sales, significantly impacted by the tornado disruption, which negatively affected e-commerce sales by 750 basis points [12][16] - Store count had a slightly positive comparable sales growth, driven by increases in traffic and conversion, but was offset by lower average transaction values due to liquidation efforts [12] Market Data and Key Metrics Changes - The first Bed Bath & Beyond Home Store opened in Brentwood, Tennessee, with sales exceeding expectations and significant media coverage generating over 250 million impressions [5][7] - The company plans to convert all Kirkland's Home stores into Bed Bath & Beyond stores over the next 24 months, with each conversion expected to cost less than $100,000 in CapEx [8][9] Company Strategy and Development Direction - The partnership with Bed Bath & Beyond is central to the company's transformation, focusing on an omnichannel retail strategy that includes store conversions and expansion into wholesale markets [9][10] - The company aims to close about 25 stores with natural lease expirations in January 2026, while estimating that 250 to 275 existing Kirkland's stores will remain in the mix over time [28][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the second quarter due to the tornado and liquidation efforts but expressed confidence in the future growth potential driven by the Bed Bath & Beyond brand [4][18] - The company expects to continue promotional activities and anticipates some incremental tariff costs beginning in the third quarter, while focusing on improving liquidity and funding conversions [18][37] Other Important Information - The company ended the quarter with $82 million in inventory, down 12% from the prior year, and total debt outstanding of $55.2 million [16][17] - Management is actively negotiating with vendors to mitigate tariff impacts and is shifting towards more domestic sourcing as part of the store conversion strategy [36][38] Q&A Session Summary Question: What were the conversion costs for the Brentwood store? - The CapEx for the Brentwood store was significantly less than projected, around $30,000, due to minimal renovations required [23] Question: How many of the existing locations will ultimately be converted? - The company plans to convert approximately 250 to 275 of the existing Kirkland's stores, with about 25 stores expected to close due to lease expirations [28][29] Question: When can the e-commerce business be expected to stabilize? - Management indicated that they are focusing on brick-and-mortar sales and expect e-commerce to normalize to earlier declines, prioritizing more profitable transactions [32] Question: What is the expected impact of tariffs in the back half of the year? - Tariff impacts are anticipated to be around 100 basis points in Q3, with limited impact expected in Q4 as the company continues to liquidate non-go-forward categories [39][40] Question: How many conversions are planned for 2026 versus 2027? - The company has placed buys for 30 conversions in the first quarter of 2026 and aims to maximize store conversions based on inventory availability [41][42]

Financial Data and Key Metrics Changes - For Q2 2026, net sales were $75.8 million, down from $86.3 million in the prior year, reflecting a 12.5% year-over-year decline [11] - Comparable sales decreased by 9.7%, with a 5% decline in store count [12] - Gross margin decreased by 410 basis points to 16.3%, primarily due to a decline in merchandise margin and occupancy deleverage [12] - Net loss was $19.4 million compared to $14.5 million in the prior year, with an adjusted net loss of $17.8 million [15] Business Line Data and Key Metrics Changes - E-commerce sales faced a significant decline of 38.5%, impacted by a tornado disruption and liquidation efforts [12] - Store sales showed slightly positive comparable sales growth, driven by increased traffic and conversion, but were offset by lower average transaction values due to liquidation [12] Market Data and Key Metrics Changes - The company opened its first Bed Bath & Beyond Home Store in Brentwood, Tennessee, with strong initial sales and customer traffic exceeding expectations [5][6] - The company plans to convert all Kirkland's Home stores into Bed Bath & Beyond stores over the next 24 months, with each conversion expected to cost less than $100,000 [8] Company Strategy and Development Direction - The partnership with Bed Bath & Beyond is central to the company's transformation strategy, focusing on omnichannel retail and leveraging the Bed Bath & Beyond brand [10] - The company is also exploring expansion into the wholesale market for Kirkland's Home, aiming to improve supply chain efficiency and unit economics [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q2 due to the tornado and liquidation efforts but expressed confidence in the future growth potential of the Bed Bath & Beyond brand [3][4] - The company expects to continue promotional activities and manage tariff costs while focusing on brick-and-mortar sales to improve profitability [18][32] Other Important Information - The company ended the quarter with $82 million in inventory, down 12% from the prior year, and total debt outstanding of $55.2 million [16] - Management indicated that they do not expect significant additional expenses related to the tornado damage in the second half of the year [17] Q&A Session Summary Question: What were the conversion costs for the Brentwood store? - The conversion cost for the Brentwood store was approximately $30,000, significantly less than the projected $100,000 due to minimal renovations [23] Question: How many stores are expected to be converted versus closed? - The company plans to close about 25 stores with natural lease expirations and estimates that 250 to 275 existing Kirkland's stores will remain in the mix over time [28][29] Question: When can we expect stabilization in the e-commerce business? - Management anticipates that e-commerce may normalize to earlier declines, focusing on more profitable brick-and-mortar transactions [32] Question: What is the expected impact of tariffs in the back half of the year? - Tariff impacts are expected to be around 100 basis points in Q3, with limited impact anticipated in Q4 [39] Question: How many conversions are planned for 2026? - The company has placed buys for 30 conversions in the first quarter of 2026, aiming for a wide rollout in preparation for the back-to-campus season [41]

Financial Data and Key Metrics Changes - For Q2 2026, net sales were $75.8 million, down from $86.3 million in the prior year, reflecting a 12.5% year-over-year decline [11] - Comparable sales decreased by 9.7%, with a 5% decline in store count [12] - Gross margin decreased by 410 basis points to 16.3%, primarily due to a decline in merchandise margin and occupancy deleverage [12][13] - Net loss was $19.4 million compared to $14.5 million in the prior year, with an adjusted net loss of $17.8 million [15] Business Line Data and Key Metrics Changes - E-commerce sales faced a significant decline of 38.5%, impacted by the tornado disruption, which negatively affected e-commerce sales by 750 basis points [12] - Store sales showed slightly positive comparable sales growth, driven by increased traffic and conversion, but were offset by lower average transaction values due to liquidation efforts [12] Market Data and Key Metrics Changes - The company opened its first Bed Bath & Beyond Home store in Brentwood, Tennessee, with strong initial sales and customer traffic exceeding expectations [5][6] - The company plans to convert all Kirkland's Home stores into Bed Bath & Beyond stores over the next 24 months, with each conversion expected to cost less than $100,000 [8] Company Strategy and Development Direction - The partnership with Bed Bath & Beyond is central to the company's transformation strategy, focusing on an omnichannel retail approach [10] - The company is strategically liquidating non-go-forward inventory to optimize category mix and prepare for store conversions [4][18] - Plans for expansion include the introduction of Bye Bye Baby stores and a wholesale market for Kirkland's Home [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from the tornado disruption and ongoing liquidation efforts but expressed confidence in the brand's future and growth potential [3][4] - The company expects to continue promotional activities and manage tariff costs while focusing on brick-and-mortar sales [18][32] Other Important Information - The company ended the quarter with $82 million in inventory, down 12% from the prior year, and total debt outstanding of $55.2 million [16] - The company is actively reviewing store locations for conversion and plans to close about 25 stores with natural lease expirations in January 2026 [27] Q&A Session Summary Question: Insights on Bed Bath conversions and costs - The conversion cost for the Brentwood store was approximately $30,000, significantly lower than the projected $100,000 [23] Question: Future store conversions and closures - The company plans to convert 250-275 of its existing Kirkland's stores, with about 25 stores expected to close due to lease expirations [28][29] Question: E-commerce momentum and stabilization - Management aims to normalize e-commerce sales while focusing on profitable brick-and-mortar transactions [32] Question: Tariff impacts on gross margin - Tariff impacts are expected to be around 100 basis points in Q3, with limited impact anticipated in Q4 [39] Question: Conversion timeline and store count for 2026 - The company has placed orders for 30 conversions in Q1 2026, aiming for a significant presence in the back-to-campus season [41]

Financial Data and Key Metrics Changes - For Q2 2026, net sales were $75.8 million, down from $86.3 million in the prior year, reflecting a 12.5% year-over-year decline [11] - Comparable sales decreased by 9.7%, with a 5% decline in store count [12] - Gross margin decreased by 410 basis points to 16.3% of sales, primarily due to a decline in merchandise margin and occupancy deleverage [12] - Net loss was $19.4 million compared to $14.5 million in the prior year, while adjusted net loss was $17.8 million compared to $13.9 million [14] - Adjusted loss per share improved to $0.90 from $1.11 in the prior year, driven by an increase in share count from 13 million to 22.3 million [15] Business Line Data and Key Metrics Changes - The e-commerce segment faced a significant decline, with comparable sales down 38.5%, impacted by a tornado disruption and liquidation efforts [12] - Store sales showed slight positive growth, driven by increased traffic and conversion, but were offset by lower average transaction values due to liquidation [12] Market Data and Key Metrics Changes - The company experienced a significant impact on e-commerce sales, estimated to be negatively affected by 750 basis points due to the tornado disruption [12] - The inventory at the end of the quarter was $82 million, down 12% from the prior year, influenced by a temporary pause in shipments due to tariff uncertainties [16] Company Strategy and Development Direction - The company is undergoing a transformation through its partnership with Bed Bath & Beyond, with plans to convert all Kirkland's Home stores into Bed Bath & Beyond Home stores over the next 24 months [8] - The conversion strategy is capital-light, with each store conversion expected to cost less than $100,000 [8] - The company is also exploring expansion into the wholesale market for Kirkland's Home, aiming to improve supply chain efficiency and unit economics [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q2 due to the tornado and liquidation efforts but expressed confidence in the brand's future and the strength of the Bed Bath & Beyond name [3][4] - The company expects to continue promotional activities and anticipates some incremental tariff costs in Q3, while focusing on setting the stage for growth through store conversions [18] Other Important Information - The company plans to close about 25 stores with natural lease expirations in January 2026, while estimating that 250 to 275 existing Kirkland's stores will remain in the mix over time [28] - The company is actively working on mitigating tariff impacts and is negotiating with vendors to balance sourcing strategies [36] Q&A Session Summary Question: What were the conversion costs for the Brentwood store? - The conversion cost for the Brentwood store was approximately $30,000, significantly less than the projected $100,000 due to its recent remodeling [23] Question: How many locations will ultimately be converted? - The company estimates that 250 to 275 of the existing Kirkland's stores will remain in the mix, with plans to close about 25 stores [28] Question: When can we expect stabilization in the e-commerce business? - Management indicated that they expect e-commerce to normalize back to earlier year declines, focusing on more profitable brick-and-mortar transactions [31] Question: What is the expected impact of tariffs in Q3 and Q4? - Tariff impacts are expected to be around 100 basis points in Q3, with limited impact anticipated in Q4 [39] Question: How many conversions are planned for 2026? - The company has placed buys for 30 conversions for the first quarter of 2026, aiming for a wide rollout in time for the back-to-campus season [41]