KIRK - Earnings call transcript Q2 2024

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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 Second Quarter Ended July 29, 2023.

Joining us today are Kirkland's Home Interim CEO, Ann Joyce; President and COO, Amy Sullivan; EVP and CFO, Mike Madden; and the company's External Director of Investor Relations, Cody Cree.

Following their remarks, we'll open the call for your questions. Please note, today's conference is being recorded.

Before we go further, I would like to turn the call over to Mr. statements. company's Securities statement XXXX Litigation important regarding the of the that reads cautions Private the Reform forward-looking he safe within harbor meaning provides Cree Act of Cody, please go ahead.

Cody Cree

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

and differ available uncertainties, in Forward-looking from that which and cause release with statements at unknown replay involve risks like XX, results replay kirklands.com. to on known the XXXX. well remind everyone Kirkland's more be in be provided will webcast Those as future results. risks website periods are through the fully today's in this materially and forecasted actual Securities uncertainties via Kirkland's Commission. I may would as the link press and Exchange September for described available company's A to also call will filings

would like over to Now Ann, over Interim Joyce. to Kirkland's call I Ann you. CEO, turn the to

Ann Joyce

and you, everyone. morning, Thank good Cody,

right going the We return to business profitability. into headwinds. associates Kirkland's want the things up to results, putting I immediate tireless to expressing these knew at by to But and not were to Before the the are we success in gratitude macroeconomic jump work my company profitability. all the into our ride remain against I we to difficult translate efforts and we doing start am are return confident ship for our

our traffic continue that a a year portion large quarter more This has to as necessities shift macro even to levels become inventory wallet On to spend on with began the competitive. our activity. As impact and behavior income disposable the challenging for customers battle of expected, a as pandemic, their share continues after sales prior consumer in experiences. difficult remains QX level, challenge inflation due was liquidation a of comparison

year-over-year QX comparisons traffic down difficult throughout the of result and the in quarter, were sales comparable a As decline X.X%.

and call towards part as we to and result, point refocused a strong engage As historically better we brand which comp voice And emphasized our our seasonally our our decorative decor, efforts for as a focal of brand. value been last a accessories category on discussed customers, relevant home has our increase. our delivered

We in expect in continued growth category quarters come. the to this

typically a successful that highly Additionally, half. the drove season and channels early back for QX. us to indicator these had trend promo higher led performance rate in The continued we year-over-year is conversion that in increased categories July a Christmas Christmas a decor, into both demand strong which in has and

profit approach the basis initial driver gross planned, During margin than from getting target to the our voice, pivot This promotional saw XXX our by strategy. while back expand We in we improving able we data supply with chain our to normalizing us to leverage relevant margin points, And were merchandise we to along value were emphasize our our in decor points. indicators our offers. customer more a seasonally XXX basis key and shifted the our promising brand roots. marketing enables value by product overall platform the quarter, better shift

the reintroduction we success were quick are With We we marketing and potential already focus summer who and stronger historically re-engage. traffic assortment Campus. proud customers. customers with demand our the also response changes target to strategy drive along year-over-year. inventory. back we lapsed the quarter. Shifting revitalized I'm the managed lower win shifts, these on during product has to borrowings organization team consistent the our expand has marketing to reduced these implemented expanded We experienced holiday our in last the successfully initiatives QX initial of inventory in the XX% year, with campaigns resulting to more is And product weakest additional to sheet well a opportunities on end our the with overhang, planning to less Back believe from to floral, outdoor to operations. capitalize merchandise encouraged the and these how Through next compared of balance of

operating holiday. Cost over improved Our quarter, prior our year and million and critical have period. network the compared $X second for And reduce to and of inventory in-time flow for we the able has appropriate to harvest operations. levels we inventory in on-hand expenses remains our by the for were containment

the for growth. a We continue time the out of dive identified a to aim future. we every would this of profitability door an quarter expenses return we manage tightly dollar improved knew be to efficiency that as be Overall, deep transition strategies challenge. and extensive as near-term the profitability performed to going would and the and We increase we anticipate to

initial soft and changes our home persistent difficult from pressure is look promising, rates. still credit debt remains sector generally card of inflation, consumer Some the and are interest up The headwinds. mounting but higher under we against

are our significantly we the control of of outside control. to improve However, areas issues business working the our that and combat diligently are within

flatter we last of to a be We've organization great with deal months, the success. for have work our to restructured reposition ourselves teams done be nimble. the Over to X strategically a ability

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address near-term we remain and still set ability already discovered many team's have have executing this our I to our upon ongoing, issues While have expectations in is confident to that Overall, process the for these deliver teams begun we initiatives. ourselves.

to and committed to driven company are profitability. We return the

our on results detailed our of and to call health turn and well near-term improvement I diagnostics COO, our as over Amy checks provide more will the who President Now the would commentary as strategies. Sullivan, to a like

Amy A. Sullivan

we is QX, and Thank a Ann, brand. of our morning, vision success quarter our but and you, the faced challenging that long-term on we good everyone. in focused doubt the future overall for remain no There

we're Ann areas into necessary to returning our in As a specialty core, of the deep and constantly we a dive styles right health value expectations customers a to step a a have we to Most home many make that need profitable with value. a our meets delivering organization customers, a our an at to our product has of distinct assortment omnichannel and wants growth. At shop. point importantly, discussed, view communicating while which that value-based style and business, trends where provide decor the been thorough she and need means do great to we latest are performing sure check includes the the of when retailer, experience we to

to recalibrate we needed why choose Home we strategy, our customers core the As Kirkland's marketplace. competitive have the reaffirm and our we in advantages

historically As length, with because strayed we base from and customer loyal what we've at our resonated discussed it. we've suffered of

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channels with of of at ensure social the make. the through and have spent core surveys associates in every the voice time We we quantitative and stores, is customer customers our to online, media decision across

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Kirkland's areas shoppers targeting customers and home of drive more the within marketing better the footprint. geographic demand. also of miles a XX align store e-commerce [ within this our will ] We to are traffic majority dollars to believe are our efficiently our that use storefront. vast by The served We

So localization is now within top marketing our priority. a campaign

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data limited renewed program and mail. I valuable commitment am loyalty announcing product direct platform customers, to our our customer. time offers exclusive coupon launches our by customer leverage will We through target most the to excited and delivering

lapsed marketing purchase customers, and engage frequency. full goal built their the to increase Our strategy be with new to will customers omnichannel drive funnel with reach traffic

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our beloved and us. our customers will delivering the expects to still committed we are we value sharing years Maximizing our confirmed come. for have from program took by our initiative our more of for product, share this like loyalty our to in the a her are committed we she customers solidify from We approach and to help We to look benefits commitment of loyal experience the areas about to at other of learnings With coming to the in omnichannel diagnostic same health the basic customer our recalibrating business months. with the check. and are mentality. I'd some priorities strategic vast forward center,

omnichannel as digital-first with the a unique in brick stores. future. online foundation embracing strategy a are both This strategy, starts and optimized for mortar and our product We

our Our and brick higher-priced and seasonal in mortar. cannibalized growth categories in furniture large-scale decor

is sales profitability for furniture of However, e-commerce. key and a driver

but important assortment pricing we part to As value an has to been true we will we strategy, be we believe furniture redefine rebalancing business, our ensure strategy be are our and continue heritage. will of the our to

renew We to proud each and category our to for strategy in flow channel. our category tools our merchants ensure is this product optimized time incredibly focus, short have commitment of adjust strategy organizational and to value decor. to pricing our and our have the home our work renewed product mix I'm structure uniquely done our

As saw holiday be is later for demand in products in earlier, decorative Halloween, we said will indicator and Ann a QX currently which year. this accessories we good particular, believe promising driving holiday. in demand, strong

have curated to unique experience, are a assortment evolving allowing both product our online in-stores. We but strategy, customers committed and to cohesive our

our are a our we solidify strategy, e-commerce platform. we channel up merchandising end-to-end assessment As full of wrapping

community modern relevant the combination a the conversion the our ensuring and and take for shoppers. We channel stores. We we are wins to support the right our with that online as am our the for week to drove committed strategy and long-term in-store directly the store and to happy strategy with to correlated brand resetting our road about growth. I'd and supply map their long-term we that pivots pleasure e-commerce of our product demand. further each These our that calls the of are to tactics. Most to their to both for customers the to focus forward These and through the expectations operational to XXXX a are standards efficiencies customer today's renewed creating as the our well experience. tactics assessing the seen about e-commerce and chain and we long-term in future brand conversion in product since seasonally I've and sharing maps of I meets the visits But I'm traffic partnership of teams associates. In new product future. our improve simplify marketing teams. delivery. more in leaders, committed recently, marketing experience have flow the overall optimize drive dedicating in-store short- road we've we meantime, like moment highest report to talk had ensure are to look of store incredible to to improvements they clarity provide heart time platform and

teams to excellence. ensure step their of and discipline stores distribution and are customer constantly operational the traveling associates Our to center on to impact we review to our striving and and work every its for are

we Our system seamless IT team foundation growth for excellent future have in successfully which strive QX, omnichannel an as upgraded our experience. a our POS to is

our rebalancing store, and contests operational our introducing associates and brand to In support and teams keep and rewarded efficiencies incredible addition for incentives season holiday this engaged are to excited for dedication and store to our improving our to new their customer. the we passion by payroll

center teams As our are keeping our of One, voice before drive brand, the than customer near-term the our path profitability and a brand. more are ever that X our committed aligned growth. at strategic around to the we initiatives of to

associates delivering a voice in great seasonally quarters. demand she and the and that wants all decor to shop. omnichannel performance, tech cost new always we something to a an effectiveness to product remaining path to brand efficiency for This at to and tactics meets home stores relevant the This in of e-commerce. continuity growth and reactivate our marketing driving operational will our curated are her built to disciplined process foundation supply Three, price. We for deliver whenever for drive of committed retain being and plan unique with the We through profitable to center. and Two, to are we to drive containment. obsessed, known be are resetting sustained her. and high-performance our shareholders. ensure to Inside, acquire, have we are we chain we plan strategy and value wherever is profitability X on-trend Four, the culture committed our a and enablement for at success voice

We a proud culture that in are seen company revitalizing and I'm I this organization our day-by-day, to have a part of. new be energy

gratitude turn to like the detailed commentary Mike, function business. delivering to in financial financial yet value to are to continue support our performance we turn will we in reiterate journey. be few won't of to we've not the this to results, remain you. evolving my to a and quarter. over started who I'd call long-term but our It over just shareholders. With like easy transition to apparent and stakeholders Mike, the who ago, Mike, near-term, will tangible to diagnosing our It I making is months our but every that, challenging of our progress in associates, the I'd in Before because likely call vendors and all provide second over be the on committed

W. Madden

and good morning you, everybody. Thank to Amy,

XX% channels, X% quarter, comprised and transaction. Breaking by to million. the for rates. That's items in quarter, the declines, unit compared May, year down second increase sales in in the that perspective, quarter to year sales later was and For The to in a the from quarter. merchandise during with down million per the XX% for comps largest in in driven sales both category $XXX.X within transaction decline first our was year decreases primarily and were a total This down count offset retail in the partially sales was net quarter, The quarter down e-commerce outperformed both From year. in-store year-over-year included which in second outdoor prior the in of prior the down had prior X% down online, average of selling June basis store in were was X.X%. the XX% the traffic decline to a XX% by an the small the due sales X% in compared decline compared comps shift XXXX. in largely prior and caused comparable July. value conversion $XX.X receipts on of to average decrease E-commerce Stores X% XX% the versus a a e-commerce. average period

in furniture declines Sales declines saw in with with across by accessories. gains wall regions in of Southeast of XX.X% increased also in to key These holiday were in West. Gross slightly We partially year. Florida better prior performance points having declines and and largest consistent compared margin offset prior ticket compared the the the XX.X% the follows. higher weaker The change relatively components and this categories geographic XXX was are profit quarter. and year and results the as results to year-over-year in sales basis decorative to Texas

along XXX drove improved margin. XX% freight rates to in levels, prior First, with flow, basis merchandise the in versus Lower quarter. merchandise XX.X% lower and increased margin product inventory points year increase the

with distribution labor than combined costs efficiency inventory a lower X.X%. versus costs. increased increase storage prior On year cash and year. points a is sales million $X.X from last basis, lower lower the reflecting improved of to year due quarter, were sales basis to this capitalized XXX costs largely distribution as decline central percentage Second, the The deleverage costs

quarter. Fourth, XX resulting is a from Actual primarily due Third, both outbound to due sales basis expenses, costs freight was store to the deleverage reduction increase decline. improvement shipping by lower e-commerce of increased slightly is points and levels. occupancy in basis costs, versus the XXX points prior The improved X%. rent XX.X%. to The primarily inventory percentage year from store activity as to sales a including up shipping

corporate $XXX,XXX were overhead impairment XX to and And basis of of for expenses As $X a to operating quarter routes X.X%. Total prior assets stores fewer cost in to ran stores by compared control sales the tight we Impairment store in or expense XX.X% of $XX.X excluding impairment, to The the million and in charges, marketing expenses. prior million year. along quarter. compared e-commerce sales million of year than million prior compensation primarily technology sales charges to and to included other was and points related declined in or decreased with result improved reductions result, quarter. Adjusted $XX.X expenses, underperforming year million decrease million $XX.X $X.X the negative to XX.X% EBITDA, excluding of expenses, by lastly, depreciation the year the in the stock quarter. versus $XX.X prior for the negative minor

operating quarter. improved $XX.X to the loss year Our million million prior versus $XX.X in

Our income an year an to in the compared X.X% of tax expense rate of prior XX.X% was period. expense

the to sheet. balance Moving

of with million year plan. of under $XXX.X in $XX prior We according control $XX of compared inventory at quarter. Our million to borrowings We in and year last the outstanding million levels the prior at and inventory to end end period. or million year the are XX.X% $XX.X the versus -- the had ended flowing quarter

to inventory holiday being stores. is the and our centers largely in process of arrived distributed Our distribution has in

outlook our to year. for remainder the of Moving the

not forecasting guidance our its policy in our macro-economic difficulty trends. the traffic providing the conversion and visibility We around and impact on are specific continuing of environment given

early areas. Early the do our purchases. excess that color environment to key be ticket third traffic year to we headwind into to and the However, due customers be than are on proving back some anticipated. We inventory provide expectations around quarter, more in the a QX to faced significant scaling prior higher remains are clearance in difficult challenging, want comparisons challenging for continues

channels, are optimism our strong customer. conversion that gaining we However, in seeing plus on our which traction some are improvement provides in with both side, us the adjustments merchandise the with rate

the We QX inventory merchandise expect begin sales to stabilize improve of positive margin adjustments comparisons our in toward and as and to the on are The take hold. side. less marketing QX With end for as and margin in is merchandise the merchandise period, into to we expect holiday clear half, continue to a assortment we particularly that the holiday season. back positioned the improvement get well deeper

continues to in efficiency help levels, inventory gross normalize half. supply should Our lower improve with the margins profit also back chain which

more well to year-over-year continue reductions prior heavy expenses as as such less. store as half somewhat operating begin marketing. from and very level anniversary will fund as in back moderate The doing of on for with to decline we we tightly manage operating expenses focus the year We strategically the payroll areas as expense

of end the expect reach borrowings around and third to 'XX, to be terms goal the second for quarter adjusted back results overall the our to $XXX sheet, we that given $XX return would the into more be In quarter. and comes of bulk for balance million adjusted between peak million momentum the the improvement and levels $XXX This positive going inventory toward it we quarter. When EBITDA, peak our million expect of prior should while product but seasonal over our of goal to with reintroduction the positive XXXX. of Achieving giftable has improvement for and be in profitability half will with us fourth for And a a the the year. an more component the been composition year gains. drive ammunition start deeper sales coming trends, a now with current EBITDA the provide stronger to full our difficult to generating sales inventory

get time which base in off environment, Amy improvements are activities the the customer goal fruit, adjusted our take historic some to EBITDA To a historical and mid-to-high lows. but bear building and top-line. consumer will to single-digit momentum. restore has underway is grow the create it we starts in about to sales margins, challenging average. particularly efforts our These talked been XXXX, this, with beyond back Looking to do

is average half doing Taking top-line on revenue, potential. volume million. Our provide store to million. $X yield E-commerce million improvements additional in store ground potential. is current Prior million additional lost adjusted $X.X would which the to $XX base average translate pandemic, over would that over current store around of around EBITDA our our in up $XX only

already have to sourcing enhance distribution supply fixed efficiencies taken We steps chain our our improve facilities. from costs remove capabilities, and

While in cost see process, our margin beginning in structure supply our efforts. we still early the to are of improvements these and because chain merchandise

We are addressing additional these several are to additional ways The there progress on to historical in of streamline these our achieved operating to will updates to cost and returning structure. quarters, our each we the the over of combination levels. areas. believe provides areas we In Significant provide EBITDA but adjusted address reductions have last been a redeploy. factors coming years, pathway

for like our capital allocation. I'd Lastly, to priorities reiterate

continue liquidity first reducing us more to flexibility. re-establishing and borrowings to We focus the on with business that a operate level of allows

our create partners brand. Home I'm support now to we're prepared commitment and our our collective the the concludes remarks. will efforts success pave stakeholders the to we will your for that in and express there, for looking our value ready focus for with on gratitude Operator, at I'd for for additional some way we efforts note, employees, and long-term to Kirkland's as our business start reinvesting is achieved, dividends that value milestone parameters. return my strict our can shareholders. On that As repurchases return ways From shareholders. That Q&A. like confident to share and

Operator

Group. with from Capital question today's Instructions] [Operator Jeremy first Hamblin Craig-Hallum And comes

Jeremy Hamblin

sounded color see same-store the in of sensed early saw by some wanted we on goods, could a bit if that seasonal little commentary you August. it response to you trend, on the here get here in a because more what sales encouraged to trends, but terms were caution little I mix

us I And able also, be easing of what bit little wanted easier hoping the do So for provide same-store magnitude sales noted to to compares that combined you more detail the you compares gauge August? then was might get a maybe here. for was could if I the see you a is? what from on little

W. Madden

this said far I to think Jeremy, Sure. start, And of was performed But But Amy August initial lines against to the is mind as the deep really are trends quarter, really remarks. QX. would I'll this keeping and we in we in. third liquidation, the time how I along as of kicking in can last year. so that continue up tough, Mike in, part the it prepared they the be the phase it about in fill in inventory of in

And weekend, so had year really strong one even a last liquidation Labor lot over of the Day a we efforts. with

So up bit. We of quarter the the going out strong where December but year, year. that we're was for was be relatively do us going to the of -- for November compares rest deeper coming into ease month a last timeframe then very had and kind of a weak.

that timeframe assortment didn't year last product And really to a giftable have got in the so December that we and assortment just compete. and better see in support a coming more will opportunity that got timeframe we've we've really as we

that's year. the rest Amy? of the the of kind how compares play for So out

Amy A. Sullivan

that mix. know, would only our we're thing the be, to Jeremy, I would making category pivots to as add you

to able QX on even small. relatively impact and have first And part of the were so it's QX, we results the

accessories that back categories optimism move of holiday later the So fruitful and like able as the categories to we're half year. larger in the category in in seeing become into those pivots more we the make because were key decorative penetration we

Jeremy Hamblin

the million sales then get net noted you from you rate to per like Got that $X.X had returned of to back million it. margin. a store goal if EBITDA in $X to And you that high-single-digit run and you -- in that thought mid-single-digit terms to

in see seems just target Just that you're weren't XXXX? expectations turn unless make you still or really something magnitude. that XXXX more like that's to of to a XXXX type realistically, be challenge it going in terms XXXX like Is that sure In wanted like of comps. massive of that a thinking for a acceleration

W. Madden

ready get start. where our Yes, stand environment Jeremy, the going 'XX I'll we in that just 'XX knowing to can fold I and what's don't the think we customers that changes be on But we'd that level about strong here. as can a we and on there. confident the changes is, sit quickly, year's talked the say just How trying we at and mid-to-high get effect of beyond in call are the top-line of -- for a to 'XX. and think talking But and can single, on in back marketing on have as can positive improvement that we to do all back 'XX see the back to we assortment about I we're but and we the year to I full to 'XX. happen market activities just here relative don't a there that's we get EBITDA next we depend so so in that position this our will to think that position build say progression get going we're

Jeremy Hamblin

terms we quarterly kind an the about out either to where here year How extend rates are maturity Got basis it. up of where a borrowing environment is, those expectations your of this just annualized on be of basis kind thinking costs interest interest in or dates. about And should then thinking kind with booth earlier you currently? rate shore guys costs, made and or of

W. Madden

year think to the think interest thousand are I in relative back on going would levels borrowings dollars, last peak at are our where million I'm to of the knowing of a This year, $X.X last where that's than I inventory our do just today. we out had year, like probably up for year top because and very are hundred half back $X.X control are half about last year. Yes. going looking maybe million. last lower we the be few good to rates

we bit little built the that higher. need less to up little is this your more point, will a be versus year half as this expense for in the And here borrowing season, the but us rates the year. in are last So back bit a year

Jeremy Hamblin

And one. then last it. Got

degree, modestly to about In versus to on of be last some year? that It our but to like do bringing terms year-over-year, back back of year. think expense budget share can your think you on operating color marketing maybe Any that mailers pivot X the half you it's in the direct how here have that down in noting the only X of that? used sounded to still and going terms we

Amy A. Sullivan

I'll take Jeremy. Sure, that.

down within Our current marketing is budget. year-over-year self-funding roughly million marketing and are $X we that expense

in I With the year and they them the more year strategy, these will flat past, ways we're for using and our and we balance the in pivots plan budget the this dollars before, making we've able built core those mentioned used be that just a to relatively self-fund into as next strategically of targeting customer as efficiently marketing well. for to we're as in that

W. Madden

where kind that around We of that's think couple million, We're of little what for I number but months, take, move over may this the number happen marketing aiming a year. $XX we may or -- up. Yes. we'll give about bit, end next on depending see a

So that will be down year-over-year.

Operator

next [Operator today John Lawrence Benchmark. from Instructions] Our question comes of

John Lawrence

with that Could maximum is you period? quarter get And about as thoughts what harvest. couple seen Mike, third talked the extent it into give you've those just move of If as small me into you pleased some what's the forward, peak you impacted far in holiday? it's what as were a categories the and we up as does the as, in as in holiday get X, so far? of holiday delta that mix we we to move what's To just been

Amy A. Sullivan

can I'll any color. Amy. and Mike start it's add John,

the Christmas and parts from the decorative move Other comp accessories year, business. into growth of we we the did holiday. significant plan giftable half within most As of assortment come would growth in the our back our really

throughout maximize holiday the mentioned bigger percent an on total. of this of the the of the businesses about pivots obviously it giftable brick getting healthy component and so to for quarter. to decorating as back of a space teens while allows business, our part we're back Christmas gift, the So live sort mortar the still that being really to year-over-year getting it I a really mentioned, into really same within at December growth say X% and and furniture would our shine. as comp to being assortment it But The is I we that opportunity important earlier, making opportunity time,

W. Madden

a Yes. in talked we of about And good that that really noticeable items access of key seasonal, of It's some as the for penetration well. job a season the those to trying in these going of think did the deeper we I QX. in the deck go -- a terms shift categories be to

So that's have something in year. last place we just didn't

So we are optimistic about that.

John Lawrence

of what guidepost as of and that are follow some How there touched, success? any particular you sort they that, really as to of returns I guess, far any And Can you're on positive were of it. of those that? sort areas kind you've to measure extent looking quantify positive they were to toward category give

Amy A. Sullivan

Yes.

the at the QX even look decorative If QX, of a comp delivered increase period and accessories year-over-year. beginning specifically you double-digit early at sales

really still at the pricing grow a And continue approach rate early holiday sold And so would season indicator we really of as general we seasonal products. a promote particular season. as ended get the selling the and our some saw with particular, latter the in its the holiday a I And see lot optimism the and the solid mix minimal to optimism and the Christmas that products should get that share we season me of that in each our in took is, gives to in product, that in margin as And in and them the same end early that of lot through for we turn are we to But of penetration year. success of the half quarter this Halloween. you me to assortment just businesses fast other strategy in we then will balance Halloween our come discount. at in gives effectively of know, a category high-low

John Lawrence

me. at I rate as of you your spend of for and question did trying customers how those did that, some efforts how that some Last of know of or of you sort shoppers, all that view bring those changing view sort sort Yes. and was sort long-time what back of pieces you you're of looked back marketing but some things -- bounce that, those to to Amy, that? do direct to mail

Amy A. Sullivan

Our approach several was layers. different

high on we of to levels X and to what months XX missing that that with to was customer of so we customer from and lapsed our fast reaction a us. And really she engage was really fall survey willing give feedback that us was started

rate Additionally, of a sent the I promising higher path, would then QX really offer. And that mix to which our we mail our saw and in customers. piece, customers than be we with conversion a acknowledging sent high-value a we offer she relevant, come that to and We response lapsed average to normally would a share direct coupon her us roots expect years really to and top from it for have and both And the our we example letter can that a solely most targeted well. would with top saw these were on back seasonally lapsed conversion are coupon to a that last customer our decor response as heritage that. solid to customers offer and

back others normal come currently think So than by who at to we her we get a spending us pricing active the and right. really we as have assortment strategy And where willingness base, longer encouraged I her than the loyalty is are like. rate we're lapsed very have been that who some leaves

Operator

session. like concludes to At over this would answer now this I Ann time, closing back and turn question remarks. call our for the to

Ann Joyce

I just next talk want stakeholders. from our for work vendors Thank teams, We'll all hard as to joining reiterate today. our you the teams as the quarter. gratitude to our Again, for our and you support our well of

Operator

you, today's conference ma'am. concludes Thank call. This

disconnect at this now thank and your your may lines you time, You for participation.

Kirkland's (KIRK) 6 Sep 232024 Q2 Earnings call transcript