In This Article:
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Net Sales: $114.4 million, down from $116.4 million in the prior year quarter.
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Comparable Sales: Decrease of 3% for the quarter.
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Comparable Store Sales Growth: Positive 1.6%.
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E-commerce Sales: Decline of 14.9% compared to the prior year period.
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Gross Profit Margin: Increased 180 basis points to 28.1% of sales.
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Adjusted EBITDA: Positive $0.5 million versus negative $3.3 million in the prior quarter.
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Operating Loss: $2.4 million compared to $6.7 million last year.
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Net Loss: $7.7 million compared to $6.4 million in the prior quarter.
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Inventory: $111 million, a 5.7% increase from the prior year quarter.
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Total Borrowings: $80.4 million at the end of the quarter.
Release Date: December 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Kirkland's Inc (NASDAQ:KIRK) entered a strategic partnership with Beyond, allowing the company to retire expensive debt and strengthen its balance sheet.
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The company achieved its fourth consecutive quarter of positive comparable store sales growth, with a 1.6% increase driven by positive traffic and conversion.
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Kirkland's Inc (NASDAQ:KIRK) reported a $3.7 million year-over-year improvement in adjusted EBITDA, returning to positive adjusted EBITDA for the quarter.
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The company saw a 6% increase in transactions and a 10% increase in units sold, driven by strong performance in seasonally relevant decor categories.
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Kirkland's Inc (NASDAQ:KIRK) successfully reactivated 39% of lapsed customers over the last 12 months, enhancing customer loyalty and engagement.
Negative Points
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Total comparable sales declined by 3% for the period, with e-commerce sales declining 14.9% compared to the prior year.
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The company faced significant headwinds from hurricanes Helene and Milton, impacting approximately 20% of its store base.
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Higher ticket categories such as furniture and wall decor experienced continued softness due to macroeconomic pressures and strategic shipping decisions.
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Gross profit margin was pressured by increased promotional activity and a decline in merchandise margin.
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Kirkland's Inc (NASDAQ:KIRK) reported a net loss of $7.7 million for the quarter, compared to a $6.4 million loss in the prior year.
Q & A Highlights
Q: Can you provide more color on the trends you're seeing, particularly regarding November's softer results and the split between e-commerce and retail store sales? A: Amy Sullivan, President and CEO: The calendar shift has created some noise in November, but we remain optimistic about the combined November and December performance. The next two weeks are crucial, and we have a significant customer appreciation event underway. Michael Madden, EVP and CFO: We expect continued momentum in store sales, despite tougher comps, as we've seen traffic and conversion gains there.