FIN DeskOriginally published February 7, 2025. This version was rebuilt from Kirkland's and Flexsteel SEC exhibits, Executive Order 14197 and the TikTok executive order for the FIN archive, and the facts are as of that date.
Early February 2025 brought a new ownership structure for a home décor chain, a clear tariff warning from a U.S. furniture maker, and more time for brands that market on TikTok.
The short version
- Beyond has now provided Kirkland's with a total of $25 million of capital.
- Flexsteel reported quarterly net sales of $108.5 million, up 8.4%, and warned about Mexico tariffs.
- An executive order told the Attorney General not to enforce the TikTok law for 75 days.
Kirkland's big deal
After shareholders approved the deal with 97% of votes cast in favor, Beyond completed an $8 million equity purchase and converted an $8.5 million term loan. Beyond had now provided Kirkland's with $25 million of capital and owned about 40% of its shares.
Kirkland's said plans are underway for the first Bed Bath & Beyond store later in the year, using its store operations and supply chain to build out Beyond's brands in physical retail.
Flexsteel's tariff warning
Flexsteel reported net sales of $108.5 million, up 8.4%, its fifth straight quarter of year-over-year growth. It also booked a $5.0 million gain from selling a former plant in Dublin, Georgia.
The company said orders to implement 25% tariffs on Mexico and Canada introduced significant uncertainty and could materially change its outlook, given its sizable operations in Mexico.
On February 3 the Canada tariffs were paused until March 4, giving Flexsteel and other makers with North American plants some time to plan.
TikTok gets a reprieve
On January 20 an executive order told the Attorney General not to take any action to enforce the Act for 75 days, keeping TikTok available while the administration looked for a solution.
Furniture brands that rely on short videos for room tours and product launches kept their channel for now, but the deadline meant marketing plans needed a backup.
Stay ahead of the curve
New capital for Kirkland's, tariff risk for makers in Mexico and a short TikTok reprieve showed how fast the ground was moving under home furnishings in early 2025.
Related on FIN
Sources
- Kirkland's, Inc., Finalizes $25 million investment from Beyond (SEC exhibit 99.1, Feb. 5, 2025)
- Flexsteel Industries, Fiscal second quarter 2025 results (SEC exhibit 99.1)
- The White House, Executive Order 14197 on Canada (Feb. 3, 2025)
- The White House, Executive Order on TikTok (Jan. 20, 2025)
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