Q1 2024 Kirkland's Inc Earnings Call Transcript
Key Points
- Kirkland's Inc (KIRK) saw a 2.8% comparable sales increase in its store channel, driven by effective marketing and merchandising strategies.
- Adjusted EBITDA improved by $1.3 million compared to the previous year, reflecting gross margin expansion and disciplined expense management.
- The company expects to deliver $6 million in expense savings within the fiscal year through cost-saving initiatives.
- Kirkland's Inc (KIRK) saw a 36% reactivation of lapsed customers, largely driven by a shift back to home decor and gifts.
- The decorative accessories category saw a 15% year-over-year sales increase, indicating strong customer demand in this segment.
- Total comparable sales were down 3.5% for the first quarter, reflecting a challenging industry environment.
- E-commerce sales declined by 19.1%, offsetting the positive store results and indicating ongoing challenges in the online segment.
- Higher ticket categories such as furniture, mirrors, and rugs continued to see soft demand, impacting overall sales performance.
- The company experienced an increase in store occupancy costs by 50 basis points due to deleverage from the overall sales decline.
- Net sales decreased to $91.8 million from $96.9 million in the prior year quarter, indicating a year-over-year decline in revenue.
Good morning, everyone, and thank you for participating in today's conference call to discuss Kirkland's financial results for the first quarter ended May 4, 2024. Joining us today are Kirkland's CEO Amy Sullivan; EVP and CFO, Mike Madden; and the company's external Director of Investor Relations, Caitlin Churchill. Following their remarks, we'll open the call for your questions.
Before we go further, I would like to turn the call over to Mr. Churchill, you will read the Company's Safe Harbor Statements within the meaning of the Private Securities Litigation Reform Act of 1995. That provides important cautions cautions regarding forward-looking statements. Caitlin, please go ahead.
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Thank you. And except for historical information discussed during this conference call, statements made by Company management are forward-looking and made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements
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