Earnings call transcript Q4 2022

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Operator

Good morning, everyone, and thank you for participating in today's conference call to discuss Kirkland's financial results for the Fourth Quarter and Fiscal Year Ended January 28th, 2023.

Joining us today are Kirkland's Home CEO, Steve "Woody" Woodward; EVP and CFO, Mike Madden and the company's External Director of Investor Relations, Cody Cree.

Following the remarks, we'll open the call for questions.

Before we go further, I'd like to turn the call over to Mr. Cree as he reads the company's Safe Harbor statement with the meaning of the Private Securities Litigation Reform Act of 1995, provides important cautions regarding forward-looking statements.

ahead. go please Cody,

Cody Cree

Private for made discussed forward-looking by the of pursuant Except XXXX. Act call, and this the to the provision Harbor statements company Safe Litigation historical Jamie. Reform during of information conference made Securities Thanks, management are

results known forecasted actual and results. fully and are future statements Those cause involve uncertainties, described may differ more filings Commission. Securities unknown risks Exchange and Forward-looking periods with in and to risks which Kirkland's and from the Kirkland's materially uncertainties

like remind everyone that webcast I'd for on available in call replay also as company's A well provided via the will com. this XXXX. today's website available to as kirklands. will press the link through be April replay release, be XXth, at

the Home to to to over over Woody, like CEO, Woodward. I'd Kirkland's you. Now turn Woody call

Steven Woodward

Cody, be to at will I the of Thank board and that with a morning, And speaking plan. May, the this notice with good has Board morning, the you, a It's as my all as CEO position I've retiring provided transition from a today. Directors announced everyone. pleasure commenced result, end and of be you I

honour board served five I since great this respect for colleagues have years. our It's organization over an and been great leading the past all XXXX. I've these

knew have transformation plan the I would time highs I patience. all this predicted journey, our While face would couldn't and lows on we and take

retailers most the market in become their took furnishings share industry capture today. successful build they to and and business, home are leaders The reputation largest reshape our decades their all to

to going not an is success. this overnight knew we So be

ever throughout most truly have my challenging years career. several periods some been last the of fact, the experienced I've In

alongside position capitalize highly environment the across ability made that I a facet of better of them. is significant has business to the on However, serve ahead. improvements firmly to me makes navigate organization's opportunities resilience I'm proud that believe lie and organization volatile to in our this macro this our team every and the proud of

staying as of options background, As By executive a the CEO. be past our through our its way three member board end the Chico's. has considers of smooth the be as May industry ensure Joyce, for successor, in of as transition. Aeropostale a Ann board, will I including served as such senior and she over in senior stepping CEO will my retail roles many executive a decades, Ralph throughout notable brands Lauren, Interim the to

her In for addition most has in on years more business private practice in executives time which advises she her companies to spent own of running Ann recent board public consulting and boards various members. and senior

board June joined Kirkland's as independent an the opportunity XXXX extensive we ahead. currently the and view an face director and, in into importantly, more Ann has challenges

who President Amy of Chief President currently promotion Sullivan, we Chief to and In Officer Stores of and and as Operating the Vice Senior addition, Merchandising announced serves the role Officer.

that we of the -- XX Amy JCPenney. having in Amy of across has design worked landscape, roles leadership Express, a and in brand than End, have invaluable and an more merchandising decade today. brand Kohl's retail to much for the quality years past over evaluating the has and been Lands' instrumental in team member senior been the elevating improved has our experience

great will our over their as release that, look forward for rooting to With this company team, I the Ann these believe in skilled and firmly Amy the along holiday transition from the hands, leadership be with leaving disclosed let's earlier I in performance our our and we of I sidelines. sales in year. rest roles success that With to

the with was promising Friday the month relatively started trends and sales We quarter. November event fourth successful. our the stated of quarter as We fourth Black

effects the both a year-over-year thereafter, in-store see mix, on overall with to of significant lower our both sales began of basis. on we rapidly, our ultimately decline traffic which quarterly online, reductions drove soon inventory However, experiencing and merchandise along

to Although declining a repay customer disappointing, a debt. merchandise sheet. cash able importantly, million able were customer and cash Even flow, $XX allowed $XX with which volatile mix, generate were our we in traffic market than to over generate million in operating and we flow less us ideal to balance in meaningful strengthen

shareholders. that some I'd like look and XXXX, our five from fiscal and at margin almost that for omnichannel back potential stepping can value If our EBITDA almost the of But period was the X%. on a XXXX our year performance platform million fiscal $XXX perspective revenue moment, to to our during brand annual provide provide our power we average was

were to omnichannel support outdated not we program was no today. with is to as declining well direct operating an that growth positioned issues. merchandise accomplish sourcing able and with was We quality structure design it had There relevancy and as that

significant removed provide significant made we've true our coverage to revitalized refined to our structure, store our changes to and digital better with footprint logos distribution platform. omnichannel We updated then, brand customer from Since and costs and including stores, transformation a across create image our our refreshed operating organization, efforts footprint.

long It were a that heightened during spending customer able environment to and transformative impressive capitalize results. these we financial ago wasn't report changes on that

I with soon long-term merchandise have strategy improved liquidity challenges our positioning success significantly Although we place. ability and better followed micro continue believe an and affected the sentiment, unprecedented firmly -- to in for organization macro customer

a We sustainable XXXX to there. reinvigorate believe from stabilize business fiscal and this sets growth us in our path on

of design many changes we do past this transformative we have shoppers in and period. felt are who value and decor our merchandise, loyal So of through this years beneficial that the few made to point? customers we sourcing recognize the dedicated have somewhat been our assortments the holiday over that While our get how to neglected also transition elevating quality,

home to base. there has believe of opportunity this our customer an for incredibly This throughout portion and our history, been Kirkland's is important reinvigorate we customer

a price rebalancing points, outdoor, and be going focus such on supports appropriately still furniture While the ticket items $XX to with we're opening planning in that our ensuring we're as working provide larger on assortment customer starting availability range demand. merchandise and to categories inventory in our

highlight shifting can already layouts items. to price store a begun still we've items In while these how point ticket be larger more effectively to fact, wonderful they accent showing opening

As among selling employees these our stores continuing efforts, of conversion strong part mix. a drive culture this level push merchandise we're improved to to with updated

that drive to in going effectiveness ultimately with also dollars. resulting our improvements includes laser be on to more ROI initial supporting strategy with more rate. which we're process, this efforts in calculated mark-up the a ensure demand We're of Through much these our seeking on evaluating advertising a leveraging to higher customers, our value discount improving our to are and sales focused the marketing to spend ensure be we're going marketing and promotional

customer in that fiscal these data to the provides a very us the to promotional customer insight right and year which patterns forward into developed with ample drive powerful merchandise with coming the We've look our leveraging we behaviour in strategies platform tool and will direction.

In expecting to addition from in show we're chain margin our some supply revised to structure our up see merchandise fiscal strategy, in the relief XXXX.

the improvements and back fiscal shipping to We margin this are on come seeing material levels see and to expecting in year. quarter of first more normalized pricing starting containers rates

our amended position. during peak on credit our costs organization. is remain further across this existing liquidity and vigilant also manage extend credit While season strengthen the our news, availability to to our efforts We've we welcome tightly agreement operating our

in agreement, it the facility and dive important what to us this the XXXX, Mike added into flexibility of let lowest the mature at is availability I'll but was to set for to the term new capital out was The XXXX. of details extends the available and secure to amendment cost us.

focus organization what our difficult this merchandise, design able enhancing accomplish as structure branding, the omnichannel company's updating of macro delivering on this long-term with proud such in Overall, quality I'm and past to has the past customer, of very operating our experience profitability. the this improving been optimizing including environment -- and year, the a a

well our alternatives homes. with of unlock potential time. a are foundation customers to believe our I and do platform We're fully to strong the we provide refreshing laying their affordable, over that positioned stylish

performance I'd stakeholders detailed their commentary over we journey. the fiscal on quarter on to years this call with our Once our who With the now like over Mike, to for as I'll year turn fourth support will embarked outlook. that several the in last again, our thank provide along and

floor the is yours. Mike,

Mike Madden

Thank everybody. you, and morning, good Woody,

For quarter, which sales ago the quarter, were sales a includes decline net $XXX.X million fourth $XXX.X year store decline the in million count of in compared comparable X% to store X.X%. a and

and in to were year. similar November, was prior comps quarter, December January. a increase in sales of of quarter, which down The followed within comparable by XX% X% the Breaking sales E-commerce flat by decrease was result offset decline, of the year-over-year driven an in by ticket. average was traffic total the sales in store XX% partially a a largely decrease the in

components compared margin as to XX.X% Gross declined this prior quarter. basis to are XXX XX.X% the sales, in five year-over-year follows. to year profit change points of There

First, declined basis merchandise year in versus XXX to points XX.X% the XX.X% quarter. prior margin

reduce with to the Increased with discounting our associated decrease. assortment inbound freight inventory to rates, levels led through higher holiday and efforts along sell this

freight freight rates the previously of late in QX that rates 'XX we've much early goods. and 'XX carried spiked in higher of cost product As discussed, inbound impact through sold and and of the

These product from XXX quarter. and the costs in spiked costs points inventory to to second elevated in held our the underlying of was Operational and sale. increased year the to from sales Second, inefficiencies led central flows were levels basis quarters the increase. resulting prior as centers capitalized in uneven X.X% distribution X.X% first distribution prior and inventory

inventory was the the that costs. of by sold quarter fourth during these Most through burdened

XXX a basis in year the Third, sales of points base. to sales from store X% due from to deleverage increased costs quarter, occupancy prior largely lower X.X%

to outbound due year X.X% and product XXX led to elevated including to shipping levels additional a Sales sales. the as prior freight to deleverage quarter. move the expenses coupled increased store from more e-commerce percentage stores sales costs, with basis both Fourth, increase of routes of X.X% in inventory deployed to points

lastly, up were basis costs in in launch service. sales slightly sales year X.X% of X.X% of the shipping included XX reflecting the delivery in-home the decreased prior depreciation quarter. cost of from to prior And E-commerce versus our points year,

XXX current underperforming primarily were an $X.X or prior $XX.X $XX.X sales, impairment of sales charge recorded the stores. increase XX.X% XX.X% We of of to expenses to million operating Total related the points. basis during million or of quarter, year quarter, million year an compared in

XX other of impairment Adjusted Excluding only year including was compensation this $X.X deleveraged and management -- quarter. prior by corporate $XX.X and charge, expenses expenses basis compared in to stock excluding store to points expenses at the impairment, due million the minor operating EBITDA, levels. tight million

adjusted the earnings quarter. and $X.XX impairment non-cash to tax Adjusted year a other the Our minor normalized in prior tax prior fourth and rate compared which normalized quarter. per loss XX.X% quarter excludes was to adjustments share, was includes of for year the share $X.XX XX.X% rate in per compared

GAAP announced share, amended us Today, these extension loss year with Bank size compared share items provides $X.XX credit the to the The we of of months. from of $XX with based season incremental existing per our line including an per flexibility of $XX also agreement our quarter. $X.XX was in prior of earnings million America. during which peak facility credit asset and the million, increases line availability to

originally to agreement XXXX. was in scheduled The late mature credit

are pleased March signed behind us through to We this have XXXX. already extension up and

for given macroeconomic we and on of impact the conversion Moving around specific trends. year providing its XXXX, outlook traffic for are the and visibility to our not the customer guidance environment lack

in-store certain challenging, business. are fiscal but for do expectations we the by single-digit the of to merchandise continue high the of as trends part some areas to online have down encouraged sales be color and want However, are margin traffic range have seen we remained key our we sales thus In Quarter-to-date, XXXX, comp provide early trends recovery around both in the trends difficult. far.

labor basis Merchandise negotiations. our than to reflecting levels inside margin facilities from costs a running increased Supply costs the Merchandise inbound lower pre-pandemic XXX are year costs through and freight an prior are in as providing inventory container is decrease offset chain vendor benefiting and lower efficiency. margins range. the levels return higher distribution rates product point in

our Vegas chain recently and about e-commerce our are hub distribution supply under We've be and to offsite to and on plan, to made infrastructure continue control expense Inventories we moves control. vigilant Las flowing reliance operating storage. closing reducing our simplify according by

assortment on momentum merchandise in added promotional establishing are the these progresses activities. efforts as focused place, value through factors positive With year sales adjustments and our

mid time. priority our full speaking, ahead is profitability. business able As we think has the while our to been always for to beyond, over to volatility the the range and single-digit results, a EBITDA played in we've high year maintain part returning margins Historically in

Earlier, up We've the improved our XXXX infrastructure. in our within our of significant we improvements in leasing cited locations. including range. operations since tightened capabilities also base omnichannel Woody in store the period to made our to EBITDA achieved then, in many margins X% chain terms where XXXX We've our supply our and X%

We competitive prudently. We've reducing expenses in traffic. expense after customer to with steady effective item line manage in locations and remain job sought real done estate each continue our an operating

the top a sizable substantial flow past, can through and effect growth. As in generate line earnings momentum yield

that believe while shifts We in from assortment, maintaining over those some we've we segment merchandise with garner more from few years. our in our interest the of can the attracted emphasis last core enthusiasm customer

home where and are seasonal emphasis buys, more in on depth prioritizing an items are in decor stretched. We accessible home price points environment key categories, an more consumers our across

in over supply the issues inventory that the last affecting any in costs input quality our and have an levels years. chain top few style with on and while our earnings improvements power. and firmer control and effect the Many continue All our outsized will line of to gained expenses, have abated trajectory the we over we've feature macro improvement

with allocation, of focus liquidity to the opportunities a has been and business reduce allows that us ROI growth to more that our first and we'll achieved, capital operate as is borrowings push priority to Once level flexibility. Finally, to business forward. on re-establish the

the of have have our valuable Share and once to achieved. been repurchases term again them use capital and allocation goals expect historically we dividends been near components our in future

over operator for the back call the to Q&A. turn I'll that, With

Operator

and gentlemen, question-and-answer Hamblin question Craig-Hallum this Our today Ladies comes session. Instructions] first from ahead with Please Group. from we'll time, the question. begin [Operator Jeremy at Capital go your

Jeremy Hamblin

Thanks for questions. the taking

the customer with felt it in some around merchandise last start changes to is couple in were aggressive that little the maybe like a years you what over you've somewhat assortment. commentary And the the neglected. wanted merchandise value I maybe adjusting of So of assortment too suggested sounds your

rebalancing that will or to we you expect do that getting versus flat how in high single-digits of in you about from that to terms of terms positive? you do impacting overall that down going the back of is what that do In out transaction ticket of do know, terms terms your average You comps play mix How how that, long ticket? assortment to think of that growth? take, mentioned, in the think of

Steven Woodward

had and Jeremy. pushed realized it insight a question, good Well, our furniture a challenging into be That's this I year. coming aggressively. too year mean we was might we good And also we that assortment maybe

not being more we're we while of off and idea package, so home guide the the And us have little let the fluently. customer having total complete backing bit a a of retailer furnishings

pressures was, was be recessionary reasons. point macro that one, that's two fact to there the wanted So we was. might or number two opportunity settling our you know, making we have started that price opening decisions more the whatever at is for environment One, these because into for. customer And the what asking

purchased we in and last the assortment. range in XX% fourth starting year, of So our products about be have under quarter $XX to of the

we huge skews that's some XX,XXX. remember Now ordered, we've because know, have numbers of skew are might that X,XXX power these before you ordered where

customers to are These just we've bestsellers. and make in to easy $XX, that stores spend adjusted these for that only we have. show the And not buy that way, are the it did presentation also to proven coming our the that it visual they but choices $XX are that

the the have and we're some in that it fully and equation and it's $XX and traction first entire of out fourth And our really throughout set we'll that clear enjoying comes XX% quarter the quarter. be the I year it the gotten purchases up. set so and very with build under We've and does think in benefit for third

And assortment said, and excited we're and So really we've out emphasis. I the we're year. in reducing laid a these really job done the strategy. we've the about for bringing our balance guide like items power of now customer it. key letting of got fully We're not just a good us items And that

Mike Madden

that, you're about And on on add Hey, Jeremy, because working asking to I team's this. ticket. say one thing just been our would to

in We're going it in is, this today. is we you affects Our flowing going reflect at a buys what toward looking furniture really all, have to the think I But as talked start assortment store. they here back we're higher to half. about of the ticket the know, first ticket, still we're way of healthy

going we've it's think a traffic stores surrounding better the help ticket that ticket these now driving chance in higher how this. the may of And other conversion drive knowing items transaction what be so And us with here, But the still drive with in items that at IPT we're that historically. looking near better. far the items couple Well, and in seen it, to we to with mix I with kind have difficult the ticket that's term. per

Jeremy Hamblin

Got inventory recapture it. some perspective helpful. your nice working from you And year. overall, on had so in a of this terms the That's then capital inventories

a or know, as inventories you cash about when of swinging cash of working what also you usage that should think cash inventories to million your acceleration But the won't impact. from like could that higher year as thinking least this year an usage you perspective? a then from about back inventories to something sales, have the much if on you of the capital that's XX be expected You we do How kind plus something go at X through flow? about you flow updated. we real a were is of than obviously, did million that about be had perspective, with be that, product end should How a I think you contribute we thinking level assortment. and going something see January this that in know, as

Mike Madden

of it transit Yeah, little a times to sales and being I'll number the I have way tighter. other is 'XX, thing the And touch higher, think inventory was first a the ending December mention underperforming in due in January. to little all, on largely gotten

So had our showing earlier were they quarters. receipts bit previous little up been in than a

the a where that into well. generator think of I to end as count as about right slight think we'll But I a think there peak we as I maybe effect year is store you year high little probably should we think cash way into 'XX, an season. bit the about quarter for it prep and a, impact just I third the way the with had neutral, started that from basis given of it as look around a So obviously end little a timing bit a think we you are know, probably the it selling we as

the then But way coming And started we bit a think that it's ramp to we see 'XX. at didn't to below back type is a down of ramp up about that or traditional little and where in it. down

that see 'XX. in to expect We

Jeremy Hamblin

one out it. then before the me last for hop And of Got queue. I

the In portfolio. terms store of

XX locations think ten no QX for closed you in or So I the year.

basis. As those there are that a money losing portfolio sure thought a the wall some you today, on stores of is that where maybe take any at store look four is I'm

look about 'XX? to You be know on might that is need that trim a go you forward more thinking should at basis we stores we how or there as thought maybe

Mike Madden

think accomplished. at over our a see of as largely similar few strategy. right get Yeah, drop what we've think to 'XX. few we're work off a that you done And you years the I stores rents line. in of But I kind last kind mean, of I may looking lot to a that's saw now in maintain

that's a are know, we've analysis think get some at a But centers can of those our still I maintain And how on of those looking process. and rent thought and few well out recent there. done some base mobile the You track it's down phone we reductions. data store traffic using

by board. across us we're tells the large, good what really and And we're is it in centers

to as these with that, some hopefully base. expecting with progresses think on I to and So see to sales store I hold we're momentum think the our changes merchandise we year want that our

your maybe see constantly base our you areas to Now, the improve exposure. know, the think benefit to that areas of point, we store from can store the and reduce analyzing we want maybe, I what's country, we base we're But largely of coming. think

Jeremy Hamblin

and guys, this it. Got year. best All right. wishes Thanks,

Steven Woodward

Thanks.

Operator

from ahead Please question go & question. next Our Lebiedzinski Sidoti with from Anthony comes Company. your

Anthony Lebiedzinski

Certainly last thank in you work and a you morning And years. Woody of your luck best the for Good to retirement. Yes. taking questions. few pleasure pending with

Steven Woodward

Thank you.

Anthony Lebiedzinski

Sure.

as same-store what far can as fourth that curious, laggards just far to biggest first you there just the just you any speak of And regional as what differences were categories? of? worked sales, far categories, were maybe and highlight quarter, as going So as product you as in the terms back product can what, know, perhaps

Mike Madden

across Yeah. you standpoint, Anthony, areas I standpoint. from the a were a say fourth would geographic things others were There know, all in merchandise different region board. the even than that quarter, were pretty really that, no from

quarter earlier I well call our We performed did what of think I the had November. in our then in November make assortment. think we through the of with very I the about fourth was well effect to Friday. assortment. out a really or and was in cutbacks lot we It good looked year saw in December in that we in think the Black December seasonal big And

really So was we to last of mix in found kind of and where down run a the that a having off, given position little effects the cancellations inventory ourselves all year. just

we a in mix and we like that felt December. So got saw our little off

sell the instituting So seasonal in year really that that on lower we what these lot focusing this recover is a by of we're key deep to it's the doing making the items sure know enough to have we Friday normally where and that Black we we that didn't advantage frame just and of across taking price mentioned ammunition items time like felt Woody Christmas that have. assortment the point between

this inventory mix And, last position year. forward. think position, relative you be in better know, So the year a that's of better take I to kind merchandise we'll

Anthony Lebiedzinski

out of the Thanks then for terms about you now are of that? think inventory? How that. should And inventory, flushed much the cost in pretty we higher you. Got

Mike Madden

last much floor freight pretty that that. on The and of most year are, been in period we have the And DCs it early. all Anthony. buys after spiked all We the really now declining we're costs reflect in had our where the

like will now be year right as it as distribution effectiveness. this a looks benefit freight well center the cost the So

Those two spiked year, same time and bled environment at change that selling the and And over our be in the seems any we through. the little into affected about work as chain way seasonal through QX a QX. then bit supply the the absent rest in to of

Anthony Lebiedzinski

you. Got

then And margins, than date, higher Okay. of basis the you about terms QX merchandise Mike, far, they're to in XXX ago. points a mentioned running think, so I year that

you improvement kind if kind the to far know, what's know, just far help rebalanced of strategy, you as to goes could kind as you everything understand potential plan as being us If far of this as on according able merch for as, merchandise your of as, your goals margins? hit

Mike Madden

Yeah.

far points quarter. really we gotten last basis discounting And we're quarter aggressively. margin our year, just was hadn't the We XXX So quarter. talking to started about mind, highest so this first in point where keep

against margin. merchandise comparison, will, you if So on of toughest the we're the up kind

a did fourth we quarters, that second, we're eclipsing that overhang And get doing to last discounting we were good don't year. it of lot this of and inventory. have which And so far, clear lot year were third into news. third, now we're trying we the -- the as And we right a is we and

of So a merchandise there the us. the running I the balance of there think margin possibilities higher for for is terms year in at

Anthony Lebiedzinski

Got you.

Okay. merchandise and And rebalanced lastly strategy. then as as far this

looking makes slowdown, So of it the I you're main they more do a be the into price is stores slowdown, know get people what to points? looking more do sense current so to you are mean, affordable macro you -- you're given think have advertising? that the lot going obviously that I to way

Mike Madden

recessionary kind question. environment. That's thought strategy And what terms driving a good that belief lot a our here promotional into effective of a that of really like is we've can our given in is heading mean, be of traffic. I in

the we've are that to in discounting QX some up mean, with do and some strong backing I working. using margin a already level, things seen then category got both We've marketing room that message. some at coupons,

trying to week kind a we're work will and of at week it help us. of so margin then apply half to we're bit seeing what an that assortment more back with and with, and more into to going that think have get I little up. looking worked going to And I the as back this think, to And we're forward we'll we

where our it's that about does, I what's it So lot forward. driving when spending it really promotional time a think That's strategy. how deploy trying our and we're and going to understand to

So what would say that's there. I

Anthony Lebiedzinski

it. Got

best luck. and you thank Well, Okay. of

Mike Madden

Thanks, Anthony.

Steven Woodward

Thank you.

Operator

from our Please next And question. question comes John Lawrence Benchmark. from go ahead your with

John Lawrence

guys. Good morning, Yeah.

Steven Woodward

morning. Good

Mike Madden

John. Hey,

John Lawrence

last the for Thanks. retirement. enjoyed few over years. I've wonderful it Woody, a Congrats, a Yeah. hopefully

Steven Woodward

Thank John. much, so you

John Lawrence

merchandise the today? I about, as would have the mean, of half. now of second we we that? how far be opening talk we much the XX% as What get mix, much about you percentage mix would Would to that point, talk value price of but How the

Steven Woodward

been a components the on getting I good right that look up And XX%. that at it because we've talk Traditionally, when now it we're around make working about are that towards to to an that's know, we running basis, up. you XX%. You But annual about question XX%. want

went to and X% have us what was you have we in that is picked the X% pretty scheme to in successful to overall or furniture fund that that all in gains back good. the that And we move of and we did years. caused So, know, items have category of past our things by been very

we've points of we've have that let's of we out had and this very more both, the ticket increase and taste and and But settings know, took really rebalanced of marketing that kind our last you do was items below are focused in down design. more line that level, with line narrowed And of we furniture fund of dollars with our to that. said, new our that some price heavily higher let's on some in room year certainly, those

also let's our core $XX in, happiness to come pick happen And our that around emphasize up stores. embraced the quick really new make we and and in this surprise have But $XX to delight, customers really stores have it. something

loving Our customers are it.

customer had just hunt those we flow -- show product, made in, past, almost but the we actually remember, had because maybe so that we that emphasize flow store a we up the those in And but it the how products in as like XX% products in to we defined. not the and

and table you're Now $XX, on they we're saying, And and interested of taste putting great. in whole that look a here's on items that. if table, level items, them really really under the focusing

a of recalibrating team fantastic reap being towards done gone benefits able a those and make that. adjustments, right work's the Amy can think So customer we we and lot so what to wants have the about this Sullivan into her now job year.

John Lawrence

you quickly, stretch categories of us consumer for into find would year a -- little you're of insight the a really real half is couple just that first And that Woody, going value? promise maybe just those a to give Yes. showing aiming some or

Steven Woodward

this couple year. last half back and a have successful ongoing into year that there's been certainly of Really, Yes. the both in

Our loves newness. customer

arrangement feeds So into in an wonderful. our of floral table. it's or something, and It point coming a price been your that REIT category getting whether has kind lower for

So that's been doing really well.

levels good, do our want year, it's was business and at kind continues textile we of very end business the are furniture them be. our And last this to inventory to of stabilized year Our where and really well.

too and to of well. multiples decorative right for we making a somebody got we sure price some accessories that have so payback our and do buy just and it's we balancing home little points something And now doing that in that have come are we some we lowered think high those, categories fun can where So need and that's exciting. the their

pluses We've had some well our business. generally, pretty and But minuses decor been this for business done art has in our wall past.

I and that stores than definitely are there for think so looked they've a probably And better time. look our minuses. pluses And long

desiring look the doesn't now. looks into leaned we it in, cut customer the walk you like inventory. we've that It like really items is like If we feel right just our

John Lawrence

luck. Good Thanks. Great.

Steven Woodward

Thank you.

Operator

be today's back remarks. to concluding I'd we'll closing question-and-answer that, for the like over management And turn session. team ladies and gentlemen, to any the with floor

Steven Woodward

you I'd support. X.X just to your the past Yes, thank years, like say for

thank look to us furnishings much value player that so associate all done been say XX thank as for Thanks. thanks to better the I think specialty. that's this there, years pyramid so and and hard get ready you XX ship to everyone, results. for forward And you I in the out to supporters and the we want of on to just to next our transition every home to a stabilize have working

Operator

does and ladies teleconference. today's gentlemen conclude And that

may at You Thank lines your disconnect now time. for you this your participation.

Steven Woodward

you. Thank

Kirkland's (KIRK) 4 Apr 232022 Q4 Earnings call transcript