KIRK - Earnings call transcript Q4 2017

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Operator

Good morning. And welcome to the Kirkland’s Fourth Quarter Conference Call. All participants will be in listen-only mode [Operator Instructions]. After today's presentation, there'll be an opportunity to ask questions [Operator Instructions]. Please note that this event is being recorded. to Partners. conference like Black to now SCR of would turn over the Jeff I ahead. go Please

Jeff Black

Thank you. of And results Good morning. for to conference the review call fourth quarter fiscal welcome XXXX. to Kirkland’s

Officer in that morning well historical basis the discussed forward this conference made XXXX. morning release the pursuant this call a media. during of announced financial Financial Madden, Securities of management provisions Chief made Interim company On Private the statements of over notice were by and results of press to Litigation earlier are covered Strain, been as call has Nicole The harbor this Act the listen-only the the call, Except are information President for and by Internet safe on Mike and looking this Reform a Executive as Officer. accessibility Chief the

from results Commission, and in filed cause with XXXX. Forward-looking annual periods to statements over it which uncertainties, Securities Kirkland’s involve may will I materially results. Form to on March both Madden. report Mike With and the on known in Exchange XX, fully and described future risks the are turn more unknown forecasted Those actual including filings and XX-K differ that, uncertainties risks

Mike Madden

And production of important quarter our going improve February. Jeff. And some performance we to results you, our earnings the highlighted thanks us we that Fourth joining areas in provided forward. Thank the believe were everyone overall with this morning. for update in line focus during can quarter

and are improve our significant ticket Average were we our seeing traffic in in progress to an not traffic investments November While what we our strong impact. with assortments, we made off XXXX by refocus earnings mature. effective execution improvement holiday we were merchandise which as and hoped, results team softer décor clearance further some on quarter. able achieving bolstered But in resulted metrics we is convergence to that higher expect as and positive in these healthy wins positive products. and continue with benefits our for and ticket, our in maintained average We’ve these focus to driving throughout We are engaging higher year-over-year activity. offset up. programs on solid And on margins a had We of promotional of the trends. got an experienced December than this higher these trends sales is start very anticipated XXXX and pressure in to promotions we're in

achieving online to additional from costs e-commerce, to preference also shop closer margin crux Revenue need. of to by sales momentum additional the in season in holiday was gains comparable were and e-commerce consumers’ the pressure Kirklands.com in increases continued during shipping growth driver to deliveries channel. and time XX%, We the representing for respond experienced store in Sales an significantly XXXX aided the year. at of that their acceleration and our rate in our store increased positive

the higher about trends we achieve optimistic and initiatives seeing channel the experience underway in are We and to improve further profitability. we're the customer have

our extended needs. assortment performed during and more well Our the we to and our reach entertaining gifting shoppers’ holiday seasonal very address season of

One has rationalization, the These presentations improved clarified also include the We and floor of at gifting from SKU investing these for the and improve XXXX. depth SKU traction specific I outset. The and in-stocks side the more categories choices by is and made floor. holiday the investments in sales benefited promotional benefited have line from to adjustments to takeaways to more from on to for mix. repairs that we pricing opportunity the grow on deeper assortment. category holiday there's could that the space we merchandising season an our merchandise think sales top execution and mentioned providing on reduction

the reflect until the put better merchandise come in additional late the controls fruition not process. XXXX. of SKU buys to into These full forward we reduction do buying and Our

our Our are And goods. implemented point and to promotional the we margin textiles, fragrance, of offers coupon important to the the changes assortment sales to year, throughout recalibrations and coupon our in on to gifting thus largely stacking additional and using in our learnings complete far. drive reduce alterations we're based amount of our featured offers making sales higher systems and

to continuing additional We’re strategy promotional forward. pricing evolve going adjust our improvements drive to and the margin

Christmas. we XXXX with and quarter encountered have no borrowings with we of Thanksgiving spots strong a in fourth million gone we outstanding. between it $XX deep offers the relates As XXXX, a promotional in finished retrospect in in lumpiness little may to cash position But to the in reaction capital and

investments XXXX, pick to look the our our we for mobile to our buy center and will upgrade expansion business on business support up of direct e-commerce an in-store customers. As experience to online enhance vendor and our online

and promotional learning new Kirklands.com driven single we’re modest revenues, and in at mid in consumer in growth items testing provide continue direct importing ideas environment that set replenishment gain we’re We’ve a customers’ model. budget We will direct for rapidly our merchandize we’re the and a the year, leveraging effort needs. the operating, assortment. digit to that Kirklands.com also to and to our sourcing margin and impact. some of We Later possibly plan innovations of is will financial address smarter platform time, of have managing as growth push organized to focused potential. the show aside inspiration see our same should around have the a team to begin merchandize strong as on of involve dollars, the area both Home an richer profitability. to by our includes improving in pursuit this set new opportunity capital some and improvement in store avenues begin low our and our activity At changing outlining growth. best and accelerating sector a selling décor The we transition get

the at to chain costs on And supply limit several XXXX focus SG&A on transportation as we One realigned on management primary the on of of side peak side, season we better improvements goals and our and functions, corporate the deleverage operational cost for moves is at key business effort labor. These management and office the the they stores. regions. regional ongoing regions work our of three to reduced are two streamline join to transition better payroll and our from the outcome field structure manage to headcount

Act We returning goals, excess a ample will investments benefit Jobs capital maintain flexibility see in cash the and to have a make to shareholders. XXXX. intend from We XXXX and while our material structure, we conservative strategic to Tax achieve to of

the high growth key the improve Our customer projects return primary accelerating goal support business is experience, to invest to increase into efficiency. and by back

to devoting drive over some are will to gen growth. We identify expectations initiatives financial will other our more next valuation. benefits for support in of enhance also Nicole detail the just flexibility and benefit low repurchase go The XXXX tax future in to shares the our a tax to moment. at innovations a

shopper embark are home of plan going. store XXXX but overall the really XXXX growth perhaps more we new the of saying pace One goes this seeing continuation on of our is in we want a of sales the and for aggressive And décor assumptions sustained before store pace e-commerce is expansion without plan. slowing where productivity a a confirms to it the We improvement is see growth.

we connectivity priority some which channel modestly e-commerce and online the We capabilities further omni-channel a shipping in a and year. initial we've push we the the be is additional the XX% talent up good to for will and member SKUs added consumer making and been The despite stores manage top in have the having leadership believe product this expect call across introducing delivery, for we this profitable enhancement e-commerce the We online space. that pick side contribution we business are attractive in we vendor leveraging And reduce expand reorganized feel incurring area we with constraints, been carried about an is by chain and the recently pick and with we’ve the each over XXXX. The e-commerce store store, the to but retail separate board shift not mobile is involve can turns roll supply also digital support mentioned improvement our of for later capability So that returns margin should available improve that key and and we inventory extensive on chain buy We the the as supply experience BOPIS achieve the the direct new investments cost potential we in in about BOPIS our generate and and of and half store out customer conversion. our believe both currently I business. P&L inventory our omni-channel in-store. for represent is we've XXXX, have to level. all added of experience and and fulfill revenue. it believe both the the of through orders profitability at of process store new to revenue, this order business. improve drive the BOPIS,

added by parties Another new our two retention further via priority, ship large effort is introducing That a to enhancements our consumer and enhancements. also inspiration. mobile shifting program direct image way with The from PR conversion. acquisition to site from reduce a in-stores, third-party expansion. them. and we're responsive given than in the rapid making and its shipped and drop customer now we spend third of are fulfilling influencer revenue and we is devoting of more enhancing new Approximately Kirklands.com we're which marketing, orders is e-commerce customers at on acquisition. the improve dollars these onboard DC. revenue designed automation through our e-commerce vendors on both improve times a our we're device program loads, will majority it's of of resources digital to will speed some navigations and generated with to budget profitable speed improve foster traffic making designs, include to the additional increase improvements We're support mobile and The online standardize XXXX In click mobile and XX% from communicate where

impact continue email, These will and to retention program, this have year. mail initiatives an We which already direct our to XXXX. throughout through plan revamp loyalty and underway we should are drive

team our We want and fast for to we're drive it is customer. within of testing differently, but the gains incremental well a not of truly test and building once XXXX. our stores for tracking to to unique begin idea I dial just more online source established for for frontend to a of home challenged something the involve our into become across formed think to Kirkland turning inspiration customers to evolve. will to turn continues purchase the to affordability. our destination with guardrails to environment that inform décor through innovation as position merchandizing, to This financials? Nicole go opposed style path being business that, over our test to I'll the as And and As the sector relates an decision can grow by a at more and the it

Nicole Strain

the for or year you, prior the increase Thank increased sales e-commerce quarter Net sales X% on comparable which basis. XX% the in increased revenue. same Consolidated Mike. included store period in approximately X%, XX-week XX% compared fourth to a

which of offset For half states quarter, ending two, We of strongest for store ticket in and the was in closed increases with E-commerce during Colorado. which were stores, the site the higher quarter, net strong for the $XX.X accounting million the sales revenue. the by of positive Lusitania five softest. is generated value. average of results quarter combination opened and the new Web the store driven approximately of during mix total Texas order stores revenue stores year X.X%. XX quarter, were showing comp quarter. among traffic a This traffic were with XXX increase average a California or by and regional during negative and A gain XX% our

a year fourth We a costs. healthy our compared derived overhead revenue via continues revenue a to margin again, initial drop which in lower during initiatives, account increase party this And to delivery ago. limited have in higher quarter saw portion that merchandise result the also third mode sales from e-commerce for ship of

operating item. both operating closely to a be take affects speak presentation prevailing that let results, To and including I fourth methodology, income sales. intend with a in change fiscal XXXX to as cost no today, in periods. prior we To as We file facilities respectively, the align presentation X-K made the depreciation with on our XXX later basis standalone impact the and an XXXX chain retail from depreciation with Before more and during new consistent GAAP, now million margin basis to and fiscal QX income minute Using XX.X%. gross to of supply operating this year of $X for new related and clarify this me a versus points or million reclassification store QX presentation. more the component $X.X on to presentation for sales like-for-like profit percent the presentation change expense of under quarter, are one XXXX quantify to QX a XXXX a decreased do our including U.S. had as the

deleverage. percentage points e-commerce increased of third-party the margin freight And merchandize IMU during XX increase costs percentage at offset penetration. of sales. by QX a coupon sales percent basis as and modestly stacking increased increase as during costs components; continue as to quarter, an eliminate XX.X%; was of a sales of largely well benefit which driven XX drop-ship which from the a Looking costs, a sales. more to occupancy offers; decreased in the as growing of include due finally, overall basis was this as merchandize decreased points net but margin in e-commerce XX than margin sales, the mix activity higher to basis by distribution initiatives Outbound promotional to central points Store an shipping,

lower points increase operating period share-based to primary quarter and reserve adjustment on were charge. due partially workers’ prior which corporate XX sales, to was the were fees. by liability lower compensation professional approximately expense was Moving the a a to of expense drivers expenses. basis general self-insured offset current to for and year our compensation Operating and this Those up in period of The year. last fourth forfeitures favorable XX% severance

of issue a or approximately year statement, flat the compared to e-commerce by which a us the pretax in supply XX.X% million the as of $XX.X tied quarter revolving With increase ownership our Fiscal for $X.X expense the XX.X% law the relatively of The XX% our of in Coast of take presentation prior of operations, rate sheet in requires sales. period. capital. the the was increase changes change for change, at and income of we and line XXXX of and million, year Tax to existing in balance QX related for to or new cash credit. $XX.X of per Capital long-term for share, over under depreciation from million XX% store taxes the law of investments. expenditures tax hand timing were compensation. XX and which this to percent cash to due quarter quarter, chain rate year rules improvements benefit was will last accounting from year had outstanding from West year remained on reflects adjustment the $XX.X our in and is share-based one-time is and was XXXX full and increase Combined point decrease was the of amortization XX% Most an pipeline. forward, expansion prior full operations to the million, tax due to tax discuss the the and year’s operating And going year. $X.XX was tax prior of supply decrease tax Inventories chain with XXXX were Net and which EPS balances associated at end the quarter. deferred which last $X.XX QX a which earlier working will of stores asset performance a moving to had these new approximate impact no tax I inventory were provided new which tax per end in and a million The flow minute. an $X.XX rate debt of percentage borrowings to for on the two XX% $XX.X income a diluted a in share.

XXXX, authorization. program. million we During $X.XX, XX,XXX Year-to-date cost cost $X the at share at leaves share average of repurchase of current available in approximately under an under approximately an an we which repurchase quarter, repurchased additional our fourth XXX,XXX shares purchased our average have shares $XX.XX

anticipate our expectations Total continued to e-commerce a X% are sales comparable increase for Now to XXXX. average X%, fiscal by sales count and our between to channel. store expected increase to turning higher and driven We in total X% X%. growth

open stores the of store relates year. new first XX it over closings while the half XX The store the first quarters to we during of timing As equally count, weighted year, be to ‘XX expect to XX spread and will of store the close will to new stores. heavier be XX fiscal to openings three

included law. the $X.XX. anticipated to per in reflecting income $X.XX tax the of diluted lower rate expected rate the XX%, share to earnings Our tax in statutory are be be is year range to Full new

We expect prior of each which QX, earnings improvement the adjustments relative in XXXX to included with exception some favorable the fiscal in quarter year.

to We expect the taxes to in of our to supply to a million in and accelerated range in with due XXXX percentage chain a $XX cash dedicated in $XX prior total depreciation. continue e-commerce and investments rate generate anticipate million larger to capital positive with lower the We the corporate flow expenditures statutory cash reduction year. than

And continue share We credit fiscal to also during repurchase questions. on any we of our year. borrowings current repurchase in the authorization. we do our expect under ready line for shares expect not XXXX And are Thank to now you.

Operator

Thank you.

our question-and-answer go begin FBR. We [Operator Jeff first Instructions]. comes the ahead. question Riley Sinderen B. Van will Please And from session now from

Jeff Van Sinderen

can you somethings more on QX are could guess the feel learnings can more how on you’re you course you you could you comments. prepared on add year? then But How we on correcting did done bit into Mike, little your should build right? better from specifically And you and in you I what guess a there? those those in I then this any XXXX? know touched color in you I feel like areas for what see have elements other What delve

Mike Madden

We an saw the to and was quarter. off mean business. represents of success actually in November. of the start. we interesting brought that got we came were comp million large And that about up we planned of I what this quarter holiday from XX% and Fourth in we a hit year plan a very $XX happy phenomenal with assortment which part our

huge was that So us. for

we most planning did within that store that as make the I post-holiday where can of then think is presentations gift Black out gifting timeframe, look worked how work. improvement. we're season and that and really And this to as we're some and focused Friday to where timeframe that what Christmas at we as and look in move between we work we year the our had the into that specifically

had if think brought devote would to learning. that's we and have we little bit a that and a a again, all little space I over do to more deeper it

year got And the of new BOPIS, year This we model. some well. bit move then I through think launch a effect with traffic big can of toward program. marketing that we digital believe the Our during more once well. timeframe is we've of our And acquisition that an have drive a pivot help as can

delays position it for past will better in a positioned the we're opposed as much better to our some also that an of advantage orders us the at customer faster timeframe. that to how as going do into about and pace. that think timeframe of to to year. quickly in gives And best And to mentioned we've online assortment during get during We customers opportunity to the take we the that I a be orders experienced fulfill

a dips dip we I we've fourth got call that of in XXXX the terms lot a those that put the I And belt a things So in And of to put we'll little into traffic, the bit we are better, year as managing activities. promotional attention obviously get That there. our that under I response of out saw. we have of the well. managing a quarter, and that think aggressive to some know but there in is once effort and the those another little would number margin other key ups in

Jeff Van Sinderen

when then running? be BOPIS And up fully and will

Mike Madden

half. back the In

Jeff Van Sinderen

And touched the know customer differentiation that there? merchandize a you're wondering little and thinking experience how think omni-channel year as this an can you both that then I content, stores in about of But about perspective. add and enhancing you on from color Any bit. you just

Mike Madden

the would on would Well, I is side, licensed adding this just, we're I product year. there say some what merchandize

you'll think starting that I see in QX. rolling in

So watch for out that.

done that's of a I an lot in whole the think add something we past. haven't a that

about It's presentations that merchandize excited how about pull products. company a the how Jeff. initiative to to in as that how importantly capabilities the organized lift online an good remarks. But be pulls for improvements We off, really it. the to mobile called come mentioned Our team to up includes our and this and around in about. out, really more our existing we as we've format it feel that and making I I the so that, innovate. do good key some some dedicated will we're that of stores off XXXX we I And prepared all our that the and offering feel a about that think will as on is site And it in team sale the testing show it, we're we effort well planning

Operator

And Please our ahead. Markets. Capital question go KeyBanc next Thomas comes from Brad of

Mike McMahon

could. thinking operating the earnings range, from planning Couple help if margin guidance, you the are I margin are context perspective? $X.XX questions and in to us about what a all about $X.XX gross about margin you you of the think Can please? How

Mike Madden

side, margin mean, like the the that. I it in on feel opportunity bit. we is there margin the merchandise script aspect mentioned a of On I

our feeling back account we of all retailers, think if that cost. mean are retailers, that to most try some year So that though something transportation higher can in some there. this that's and We’ll I I gain we we with believe for give create guidance. not

you'll we then And the here. So guidance a profit -- the have a operating modest in the that the leads in contemplated to add gross that margin more from expect, when as in flattish margin. increase SG&A little slight you leverage of a

Mike McMahon

-- it COGS probably $X it's And then about restatement from into million XQ like the quarter to moving like we looks with be for depreciation should looks XQ? a

Nicole Strain

And Yes. with go the quarters restate re-class. an later to and that going back this X-K today we're release will retroactively

numbers, So you have so the yes. exact

Mike McMahon

that And big nice getting I then retailers just here. retailers of lot are your as in about where what all? contemplated reinvesting, taxpayers just, a for break hearing here among reinvest are Mike, is in and terms you management of were the that. We're this and reinvestments guess of backdrop a discussions board of a team some there any element XXXX

Mike Madden

the I we payment on mean, flow benefit here we then tax in our this investing XXXX, But tax seasonality one of And really won't impact the about how capital. first for make technical plan timing I’ve the same e-commerce year April payments, do point we’ll we the tax lot terms additional obviously And of we're the but given law prioritize. of last the impact cash higher this and at of applies we'll investments some in until cash us, feel the that that's and in business. for get using question of a the in foremost, bulk rate. and rate our our XXXX. talked

law. the identify OpEx that to this that allocate possible CapEx of and I think sources us see can we’ll flow proof for through been the Concept that both we're tax of of out to team we initiatives some to next-gen of differentiation going able and some the forward. cash accelerating be as these became going given We’ve benefit go do -- we what them tests. call

move have that program us and more to it that there move along well. repurchase on share faster well. as So And us we allows gives a as to out flexibility also then that

sequence more cash this that about little we in the is gives just a that’s think a healthy flexibility. through we’re us and as bit So it this position and

Mike McMahon

remind today? morning? that is of what into what here you’ve And share authorization share this repurchase baked repurchase stand given earnings guidance the as you what could And level here me count is or we

Nicole Strain

authorization initial was for the million. So $XX

As approach roughly the of of throughout of there’s use authorization baked the that opportunistic guidance an remaining. today, is $X the into year. rest What’s million to the remaining

model, price obviously, on way there depends the is in. stock it built we’ve but So in some that baked the

Mike McMahon

if in. just then And more maybe could squeeze one I

consumer any Just commentary your recent could share necessarily color degree think was refunds, it reform, on like us last to been. also has some tax don’t Any on but tax explicit is week but for about trends performing given update with on I year? -- late XQ from there how us look you how maybe

Mike Madden

a We last that track as behind they where they were and year. are well about week

the right line in business, we characterize would them In the guidance full just terms of the I pretty the trends in year. for as with that gave

bit so fourth in quarter so little this And late year. we’re positive but far

Operator

Lebiedzinski from And next comes and from our Company. Anthony Sidoti question

Anthony Lebiedzinski

much made Mike, the So good you in in you that remarks I said focused assortment. press execution, XXXX, release on and important investments think in your prepared

you of think most your in which have results impact fiscal ’XX? on do these investments will the So

Mike Madden

was think obviously. because well, that Well, throughout we I well -- them, the the building timing think of ‘XX all of

implemented some the on So pricing of in as dropped progressed. the activity, we systemically that and year work promotional

really started QX. For in affect example, margin clearance the

discipline expect SKU The will we we effect is rationalization position year’s to initiatives and our have a the year -- in and it behind down on those. this to continue margin smarter So be year as we’ll with SKU that it. full count coupled start those the get

team is our our control. maintain together level that working to and So planning merchant of SKU team

helpful in positioning the space planning, we have better so very of plan store to business. tying initiative we’ll a you And the to for a SKU much which to business that. it’s job our be in the that’s of and year's space but a benefit have as doing we’re big flexible the And the way well as

those benefit And will us XXXX. we all things continue in so think to

Anthony Lebiedzinski

for are But And you gave longer you evaluating thoughts think ultimately guidance 'XX. with base store the are fiscal base? the be? accelerating, on where also as Obviously, what e-commerce term will store you you that

Mike Madden

we Yes, that. very We're I mean focused that. on do

growth positive. the and top that we're ecommerce, out that which you a And reducing are is probably pace unabated in openings the reason that's XXXX. called We in of seeing just

mortar And so start We'd trends in and see a focused our brick the on come to to we're like little bit. back that. traffic favor

in and seen have when touch and I’ll to brick that positive really happening to we're mortar activity conversion initiatives what's brick drive and mortar what combine past, the the have you to that outlined a we’ve in described there decline. our seeing and on am had I've keep happening and what's As I online you average out points now, while ability to our if that offset positive we're because are I the at to that continue stores, ticket these the that we able the traffic and comp, with that don't track higher, look because year-over-year of site. we've customers have And highlight with we generate

you to of on it our way. the as need traffic side We we're pressure progressing we don’t we'd But us on all I of store others, that little to don't But in ours. for and in to not I want relates if up, been up rolled or touch how a So not bit supply like more as the of expand wide online. it as same its before put to. chain the terms growth, it's to is visit we convertible here, not that's stability understand a put the one it are see focus presence on our undue sales. they're it converts equal because think a if points And pressure bigger

the that's bit. so want our And continue intact. to we open new factors And still lead big and a to I to But ability refine to slowdown the think us reasons. other improve pace little these are stores and those

Anthony Lebiedzinski

fiscal going you 'XX. much How And have that Can at to that CapEx be How very maybe different your towards supply look that the also for us sense chain? you towards you. how of the much e-commerce? when put a much budget Thank buckets give stores in helpful. you would just

Mike Madden

the of the that Nicole contribution is as Last store of amount new This in to year, we that XX% spend keep was store the landlord's And XX%. lease. pretty in year a on I closer again it's capital. offset new large way a part out capital think called by mind

the capital, chain But step it and how our side So look And at supply CapEx that that it's growth you has back a we're group been. more hand-in-hand. is that because than allocating omni-channel clearly, if with look figure. and to e-commerce they're on

Operator

from Please is Van our ahead. FBR. question next go Riley from Jeff follow-up B. And Sinderen a

Jeff Van Sinderen

can is Mike, that? comps hear. then, running so your you And help this modeling with give which you about of wondering any purposes that you're QX, mentioned just are in in more margin, for there? year insight that about the Is SG&A, gross far maybe positive on that quarterly being can driven us thinking elements e-comm, great other by us you any progression terms how to

Mike Madden

The it's driven similar first part, yes, being it e-commerce a in QX. was in way as by

and in you similar comp at look brick a seeing way were far lift to so want if e-commerce it we that So a well. mortar and similar as

are that there QX, line it’s we're we and QX, that to on a QX, in bit to driven more in going e-commerce. make comparison quarterly year-over-year far to improvement some supported So Nicole the some continuing as bottom QX highlighted issues and in little then large And difficult expect see I the be in as LY. by comparison part progression, think that to

differences opportunity that the in little that As or less really some know is because obviously far QX, that also think affect QX margin made out. that a in more of bit there I will as We've there's asked opportunity more fixed across performance. were cost QX may than earlier margin be some expense don't we quarters. question, QX other your XXXX in about through pulled and the reductions they a you the quarters. big We In part goes, an

in you. And for that it little Hopefully, helpful it past. that's should better the help has so than a bit spread

Jeff Van Sinderen

there of if you could moment to you on turn then could that's a sourcing, that’s progressing, be of because expect should us on we one gross direct saw that things we order a for margin how can timing we pretty magnitude Anything you. maybe Maybe would how the substantial helpful. opportunity for give us And impact year? that update to this as

Mike Madden

And to about this, don't and XX% our the are to that, is So margin we into that the up given really assortment. characteristics think a to huge and SKU it. the SKU more replenishment which opportunities for until the business assortment, going we're import focused of lead the it just get in we'll looking by on impact entire has makes biggest that’s those which moving a steady I total given times XX% model, direct way of but first. on going this the ramping scale after again -- the in QX and the portion year. won't the up not And

is XXXX into go from you of you'll an as when so more that see And transition. impact

first year will in time the that benefit a see should be and this QX. you come Although,

Jeff Van Sinderen

on had follow a up. just the question then P&L one as And

mentioned there? a out proved from one-time I think -- final release I'm call. But you sure in number when prerelease on was there severance call done the the you shift costs QX. of that or or right that Is not to tax for I today’s the the actually $X.XX a in accounting was reform of and heard $X.XX be was there headwind

Nicole Strain

stayed items. two those much between it No, pretty at $X.XX the equally and it’s of

Operator

I to would the this closing to concludes Madden session. our now question-and-answer over for any back remarks. And like conference Mike turn

Mike Madden

you the a months. attending to in call for you we and everyone questions. today Thank to forward look you. of your reporting Thank couple And

Operator

today’s Thank presentation. for is conference concluded. now you attending The

may You disconnect. now

Kirkland's (KIRK) 16 Mar 182017 Q4 Earnings call transcript