Bed Bath & Beyond Inc. is aiming for a return to revenue growth in 2026 after reporting a sharp decline in 2025, as the retailer invests in home services and a national franchise program.
The company reported fourth-quarter net revenue of $273 million, down 9.8 percent year-over-year, with gross profit of $67.3 million and a net loss narrowing to $20.9 million, from $81.3 million in the same period last year. For the full year 2025, revenue fell 25.1 percent to $1 billion, but margins improved, and the company expects low- to mid-single-digit growth in 2026.
CEO and Executive Chairman Marcus Lemonis described the company’s strategy as the “Everything Home Ecosystem”, which integrates omnichannel retail, home services, and financing solutions to enhance customer retention and lifetime value. The strategy also includes acquisitions, such as The Brand House Collective (formerly Kirkland’s Home), and an additional pending omnichannel deal to cover all retail-centric brands and categories.
As part of its turnaround, Bed Bath & Beyond is launching a national franchise system, allowing entrepreneurs to open brand-licensed stores while the company maintains a smaller corporate footprint. The franchise model is expected to support over 50 new locations in 2026, providing access to the company’s inventory, marketing, and online platform.
Industry analysts note that franchising could help accelerate brick-and-mortar expansion and strengthen local market presence. However, challenges remain in integrating new business pillars and reviving consumer recognition of the company’s core retail brands.
