Bob’s Discount Furniture Announces Financial Results for First Quarter

May 10, 2026  by Karen Parrish in Business Strategy, Industry   

"I’m incredibly proud of our team’s execution and resilience in the first quarter. Despite adverse weather and broader industry headwinds, Bob’s continued to gain market share, underscoring the strength of our differentiated business model and strategic advantages. Our results reflect the power of our merchandising strategy, omni-channel capabilities, and disciplined approach to new market expansion. As we execute on our long-term strategy of double-digit unit growth and expanding profitability, I'm energized by the tremendous opportunity ahead and confident in our team's ability to deliver sustained success through The Bob's Way."

First Quarter of Fiscal Year 2026

Net revenue of $578.1 million increased 8.5% from $532.8 million in the first quarter of fiscal year 2025 driven by new stores and comparable sales growth.

The Company opened 5 new stores and ended the quarter with 214 stores in 26 states.

Comparable sales growth of 1.2% was driven by increases in conversion and average order value (“AOV”) in both our retail and eCommerce channels, partially offset by lower in-store traffic, particularly during periods during the quarter that were impacted by the effects of exceptional winter weather.

Gross profit increased 8.4% to $256.5 million in the first quarter of fiscal year 2026 due to the impact of higher net revenues. Gross margin remained flat at 44.4% due to favorable product mix shift into the “Better” product category relative to historical levels, lower freight costs and higher protection plan margins, mostly offset by fixed costs associated with our new Midwest regional distribution center and costs related to inventory growth.

SG&A increased 9.0% to $235.1 million in the first quarter of fiscal year 2026 due to payroll-related expenses for new stores, higher occupancy costs associated with new and existing stores and an increase in marketing spend. SG&A as a percentage of revenue increased slightly to 40.7% compared to 40.5% in the prior year period due to incremental marketing, occupancy expense associated with new stores and greenfield market expansion and the $2.0 million termination fee associated with the advisory agreement with our controlling stockholder, substantially offset by efficiencies at existing stores.

Net income of $2.5 million compared to $13.1 million in the first quarter of fiscal year 2025. Adjusted net income was $11.1 million compared to $14.1 million in the first quarter of fiscal year 2025.

Diluted net income per share of $0.02 compared to $0.12 in the first quarter of fiscal year 2025. Adjusted diluted net income per share was $0.09 compared to $0.13 in the first quarter of fiscal year 2025.

Adjusted EBITDA of $37.6 million or 6.5% compared to $37.3 million or 7.0% in the first quarter of fiscal year 2025.

Balance Sheet and Liquidity

Total liquidity of $127.1 million, comprised of cash and cash equivalents of $27.7 million and available borrowing capacity of $99.4 million at March 29, 2026.

Inventories were $336.8 million as of the end of the first quarter of fiscal year 2026, a decrease of 3.8% compared to year end.

Net cash provided by operating activities was $28.9 million in the year-to-date period, an increase of $25.1 million compared to the prior year, primarily driven by the timing of payments on inventory purchases.

Investments in capital expenditures, net of tenant allowances of $23.3 million in the year-to-date period was primarily associated with the new store program.

Recent Developments

During the first quarter of fiscal year 2026,  the Term Loan was paid off susing proceeds from the initial public offering, cash on hand and borrowings under our Revolving Credit Facility.

On April 29, 2026, the Credit Facility was amended, increasing the maximum availability from $125.0 million to $200.0 million and extending the maturity date to April 2031.

The Company has reaffirmed its guidance for full fiscal year 2026 financial operating results, presented in the table below. Fiscal year 2026 includes 53 weeks. The “53rd week” is expected to deliver $40.0 million in net revenues, $3.5 million in net income and $5.0 million in adjusted EBITDA. The Company has modified full year estimates for fully diluted (“FD”) shares outstanding to approximately 135 million compared to prior estimates of 137 million.

Conference Call

A conference call to discuss fiscal year 2026 first quarter financial results is scheduled for May, 7, 2026, at 8:00 a.m. Eastern Time. The conference call will be webcast and once available, a recorded replay can be accessed online at ir.mybobs.com for six months.