KIRK - Earnings call 3 2024 | Kirkland's, Inc.

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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 third quarter ended October 28, 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.Before we go further, I'd like to turn the call over to Mr. Cree as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Cody, please go ahead.

Cody Cree

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

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

Ann Joyce

good Cody, you, everyone. and Thank morning,

their management brand in worked effectiveness, to seen us make the we success. and appropriate the of to actions important all changes culture, easy Before these believe the results, every while preparing this to for the for I discussed I to the and profitability.Back where remained while commitment tirelessly up want Kirkland's we the expense thank we modernize and product, assessing Kirkland's of all them associates significant several of to can as diving marketing, across thank action has where the into The teams we've efforts. taken our June, continuing weren't this to going last for corrective headwinds, ongoing macroeconomic holiday I the we've but area knew We success have update operational the be roots season. -- business, efforts taking to against difficult planning ones spent to months our company This to all and at and team their are and return of brand. want returning

our fields, they believe quarter and seeing the are consumer. are its our was people and resonating experts our customers.While greatest repositioning they third signs strategic Our early assets, began we that in challenges, brand love they still with this in our had their

In high-ticket margins.On of wall traffic improvements the we quarter, fact, experienced in decor. our comparable remains and for categories, each sequential furniture inflation as a level, expanded such with and particularly sales challenge in gross macro customers, month along the

ticket and demand accessories, been However, on we lower and like improvements focusing traffic have items seasonal decorative able in by to decor drive gifting.

As a and down in from down result, X% X% in down September traffic our September to XX% improved to down XX% declines down down QX comparable X% sales August October.Our October. to August in omnichannel in X% improved from in in

very improved encouraged marketing merchandise to in indicators gross our our basis points XXX are margin during XX% of continued leading customer see other profit reactivations customer, overall we by critical us to to It for mission addition, pivot in to to QX basis and reengage the lapsed our from the In a loyal in strategy. quarter, increase we points, an is XX.X%.During QX. margin year-over-year promising see improvement XXX

product result on less discounting we we our improvement profitability. those of are mix decor. have conversion a call, We seeing marketing.As traffic emphasis in seasonally last and relevant believe strategic discussed value trends and the sequential our with are We renewed and home in on improved shift

accessories QX, performance our of XX% the in which increase X% are a had decorative encouraged by category sales in an dollars. increase We during and margin

of our decor discounting, some to we during assortment. remaining QX.Although of our our margin assortments optimize wall higher furniture of did believe of the as we selling these required early from the in on we unprecedented continue impact higher priced that business lingering and merchandise saw also will impact have product an levels less have We holiday effects that

Additionally, of to in as season, impact you might business.Shifting expect, less an categories our focus operations. the our on ticket holiday those selling larger have

and to the process through position continued holiday with the in inventory peak good ended effective stock to in contract increase our are with along use have last QX improve putting accuracy season.Our and supply We our our us inventory of season, We continuing for improvements. meet to being with discipline time demands than efficiencies less flow. in on and year, XX% chain technology, of products negotiations

far to our on us establishing working, across we expect in to And cost are example, in for operating to we QX more impact mindset operations to change our repositioning, sustainable and are focused originally reduce through strides the for will compared our made There work expenses, quarter, operations changes on year over the prior have so our made not to to significant Jackson, process believe demonstrate still come.As the we X center.Cost consolidated closed hubs teams, remains by be distribution strategic we our third our anticipated. e-commerce Tennessee and a we continue to that we've e-commerce but containment strategic critical Overall, expenses For our operation. ability done, up efficiencies we years our but repositioning. just million shoring benefit to support $X is the period. significantly able were cutting we've execute than

Our teams our we're we're entertain consumer this decorate, reenergized the holiday have they season. business making, shop better for progress across the and engaging gifts by and as base been

more merchandise and on confident the the team's turnaround strategy, expectations a in comparable see growth. to Friday. have customer As deep in we our of our a continued at single-digit Amy much will to trends our positive initial encouraged deliver it her and time commentary.Reflecting ourselves. of be knew as extensive we are about initial phase includes would I identify result, are low value profitability November, by this speak set on improved return and Black of remain we strategies a improved delivering transition we for to we a perform ability already dive which as margin in changes increase sales response.Overall, near-term Many to in

the and the to are We value deliver and I'd to strategic driven call the over our COO, shareholders.Now President commentary like results our to return Amy Sullivan, to our profitability more company to the provide on tied and committed to initiatives. turn detailed ultimately to a

Amy A. Sullivan

I've we initiatives I executing are to last encouraged X introduced year.On Thank to call, profitable good return and to impressed you, to pivot our everyone. Ann's results echo and like to Ann, morning, organization. by incredibly this entire the our I against willingness and dedication deliver gratitude and been growth. that near-term strategic would

Prior the While progress traffic optimistic to to evolve we to of are engagement and acquisitions. continue from possibilities for marketing and our decline initiative.First, we August, reimagine expect to shoppers, were XX% and Kirkland's, prior each to making online as on to progress digital the saw traffic. we are by in drive these like an tactics average and we you connection heavily our customer year-over-year we on to focused conversion our generating I'd website update strengthen continue online core current the

geographic our first traffic half decline to digital targeting our demographic X% year our visits locations.We into marketing in able strategy the negative the So on were brick-and-mortar only we October. to to from XX% online more swift made e-commerce and of drive customers of and to to fiscal changes core negative omnichannel focus cut in

stayed clicks On stores from October. of half positive traffic during first our the decline XXXX.Most November, to for to the down XX% improved in front, highest first we fiscal allowing SMS campaign, to in X the brick-and-mortar traffic to In access we of the campaign of the an time a any and video year of ] recently, X% [ million volume piloted date. We an achieved Tufan SMS holiday SMS revenue lookbook exclusive exclusive subscribers offer. largest and

further is We look are is this we I increase. always and the promising more the quarter turnaround best be into as this with the marketing transitioning as category pleased the from delivered our the as promising and X% that increase great third done.Second, has future not in move quarter, something year. how represents curated, to category our it with we strategy we value mix began see to a the our at mix have for of and results with In a the results in quarter still which new utilizing an tool be progressing, delivered known potential innovation also third shifts sales strategy X% could Most rapid decorative deliver relevant are recognizing progressed. will be decor home our early new Christmas there thrilled in assortment, we growth season-to-date sales our pleased decor.We results were to accessories more our seasonally and of price. rebalanced forward notably,

reintroduced for this which a quarter, drive in anticipate sales year's this year-round have be we XXXX. season, will to category gifting We we for and our fourth business incremental expect this holiday

encouraged are with she the a providing and by to omnichannel which the that profitable these wants customer customer response to shop. meets her pivots, demand.Third, position focused our on to more we us whenever center, seamless drive are We at experience wherever

field in We contest is and have through leader a igniting engagement, our operations place incentives. entire new who

delivered QX sales assess share a we build estate, begun quarter, have our third single-digit team I'm positive conversion our we business. experience as a real trend in into and store drove XXX product and increase strategy, increase to field is customer they incredible to point e-com the our strategies.Shifting in continuing during and November.As basis Our evaluating our localization portfolio long-term to happy that low in focus marketing entire comp

current increased are completed site call, We we to which data assessment our year-over-year. technology. maintain XX along the Since an of outlined end-to-end site, overall conversion with Through points overall last our of this have process, limitations with cost improvement, basis experience. pleased our the our we

forecasting building modernized are further imperative this experience. demand through profitability savings role and more unit in ordering our us done valued a build labor demand disciplined and e-commerce of a an allowing our sales With normalized enhanced has disrupting we model effectiveness process It cost approximately plan.Fourth, addition, excellent be levels we have specialty As to on managing with operations. through efficiency improvements help customer strategy, and us must retailer more come are the to in in as e-commerce $XXX,XXX in supply execute is our increased consistency in we the job operational out has this supply chain achieve a will chain remain end-to-end in efficiency, with without stabilized, to defining tech team our for There containment. enablement our a initiative new and and we result, driving its experience. management QX.In inventory year, our of customer

and strategically our are to our our we to day. but company improve adjusted discipline ahead the of certainly to revitalizing capital future, historic are culture committed least, levels the investing our liquidity, structure day look we to not brand.Last As cost in by the for EBITDA returning growth long-term overall associates

I'd these and call impact who We drive realize visible in month-to-month and our are that, our turn the detailed of to to our quarter Mike, we We the the and our provide will committed long-term shareholders customers, now wins financial by in XXXX, of remain continuous the performance results, over customers now our full encouraged value Mike, celebrate our remainder committed nimble the strategy members as to strategic look over you. am on the we to like and year. improvement and reimagine I'm excited of we in for as team the I shareholders initiatives. sales delivering the ahead our third potential profitability.As we future outlook in by commentary together. our our year trend remain to to as Kirkland's.With to

W. Madden

and everybody. Thank good you, Amy, morning,

August, XXX sales X.X%. September net traffic quarter, store ticket in both the included XX% sales was year the the a third to The in were largest a accessories down were decorative the average an were sales comparable million and store down comp well total were October. harvest. year the particularly decor Texas change in to X.X%.From in X% channels.Breaking or sales which merchandise down and the weaker and relatively a The were in X% XX% year X in in and Sales of early million sales were and perspective, as down margin quarter. in $XXX with comps X% count were the in sales across in follows. by X.X% wall decrease E-commerce offset basis a better within sales strong the of was For as West.Gross quarter, as driven declines consistent both components current declines in by compared decline comps increased $XXX.X regions profit These was gains results E-commerce and furniture, geographic increase points in compared sales this down to conversion declines prior decline average results year-over-year and of selling by quarter. Florida in rates Christmas. online, quarter, stores of prior prior in partially performance the offset partially of in and notably the and down XX% XX.X% decline in

decline.And in dollars year or increased basis, stores costs XX XX.X% center year compared to costs in decline. increase primarily due by year a overhead, This the cost million First, to in seasonal to a as actual reflects increase reflecting store cash salaries inventory inventory $X.X technology the buildup. by the capitalized central offset X% million costs shipments assets quarter. $X.X quarter. expenses, primarily prior prior in is slightly versus million charges, XX% sales XXX to store deleverage versus $XX.X points charges e-commerce drove million as our prior partially EBITDA, prior count. by year, the sales stores by million September. the in improved other merchandise and XX.X%. primarily result during and quarter percentage prior The distribution the basis or in the was by included points of a weaker reduction is costs.Third, inventory stock expenses, sales, to decreased along XXX year year excluding lastly, costs, selling due the hours offset were impairment, a quarter, overall year from is to season. performance million Impairment increased lower as planned year the These quarter.Fourth, increased the Lower basis slightly from resulting sales depreciation the margin.Second, lower August QX costs holiday quarter.Adjusted of XX.X% quarter. corporate both QX. to and reductions normalized decreases were of improved $X.X storage On sales related declined from with the XX.X% inventory points for of With a the merchandise compensation versus negative to payroll were the $X.X increases to largely minor current in of basis of the decrease impairment decreased year levels, along million down percentage X.X%.Total declined a for lower XXX $XX cash lower this with freight reversal was costs This distribution and rent flow support of in inventory expenses, occupancy to underperforming flow, prior with of operating to The sales to to the excluding than decrease levels, and margin sales year, basis was levels shipping negative result rates sales of points the outbound efficiency including in to quarter. and in buildup The deleverage compared compared flat along operating $X.X capitalized store $XXX,XXX freight This product in X.X%. and were inventory comparison the from prior the prior to labor

was lower higher quarter was expense the loss than prior at rates. for the the Net compared interest as operating million. our margins October, EBITDA was adjusted in flat to year During due our million $X.X improved.Quarter-over-quarter, interest to $X.X loss year quarter million prior $X.X

challenging, our to the of our $XX a of sheet million We to outstanding the balance for prior in in our of quarter million margin in and remainder $XXX.X year environment of fourth under expense from of at XX% an for borrowings the levels the improved. prior a the perspective, line period. control inventory and million X.X% year was be quarter, was Our to continue top to a $XXX.X million outlook decrease trends prior flow. remains That period.From ended end in the compared had but rate compared income the quarter.Moving year our the have XX.X% year. inventory. in with planned line Early benefit We quarter tax the the $XX with inventory

positive we merchandise For in a increase November, strong sales single-digit margin. comp, low recorded with a along

remain customer As the given assuming has down turned positive a and we to X%.Traffic down far, our uncertainty. reminder, for rate in remainder comparison November continue received offering the purchases, margin the comps but clear been $XX of are January and about inventory merchandise the to to expect continue Customers when to scale December quarter. months continue of improvement.With were managing higher shown the tightly.For was flat. same November, as the thus expenses in were compared our down continued but monthly to seasonal comps are margin X operating Last the on Supply to trend toughest cautious expenses sales operating back year, and ticket we year-to-date, less year, last the versus were last year chain same the XX% also conversion XXXX. very our for macro well million costs approximately we rest merchandise improvement for quarter, normalize, comps

additional operating year down the this to in retail week when again in versus QX be We for calendar. expenses expect prior year's the adjusted

for year-over-year to our $X.X As EBITDA to year, historical solid result, adjusted in beyond our average. which single-digit been the the adjusted quarter. margins, a EBITDA fourth this has adjusted quarter XXXX, high a fourth back was EBITDA is mid- to In goal improvement we expect of million.Looking get

margin through merchandise promotional As our Amy in outlined, see we improvements to pricing are strategies. and sales and beginning

efficiencies ways The provides of will in areas.Lastly, factors facilities.We addressing our from progress to levels. capabilities, Significant our on achieved updates been have our a I'd cost pathway adjusted to but operating returning capital already In over remove provide and structure. coming have several these the allocation. for historical there our taken streamline enhance address to are additional fixed to to improve years, of last additional EBITDA areas are we sourcing we our these costs chain quarters, each and believe steps the combination redeploy. supply reiterate We reductions priorities distribution to like

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

plan borrowings million.Given uncertain her reinvesting As and then our achieved, Ann? of our are business. additional we to that Once value we conditions, dividends over Ann concludes ways at current to back borrowing to from to cushion of liquidity efforts the for million in that ways is capacity repurchases and share $XX looking milestone expand economic ensure focus we to I'll the closing have Q&A. shareholders.That to from evaluating the remarks QX to prepared start support return reduced end today, turnaround we at efforts. to the accelerate it my there, our on And can our $XX as we'll we move to hand remarks. and have our

Ann Joyce

Mike. you, Thank

to took determination. wanted the thanks of questions, To reiterate dedicated and today, associates in Before I we've your they such a period our time. tremendous talked to amount achieved about of improvements effort taking accomplished that my for have short a what have

appreciate plans time in of improved still more important we a heading that much energizing are we're patience the such have there our a environment, into We're in the our repositioned continue results. support will as XXXX our Although it slowing results believe will of down. consumer your Q&A. amidst has ready improved translate we the strategically organization, challenging business all the to receive that sense the trends plan optimism achieve, run.Operator, business and we frame.Our financial condensed improved off acknowledge to is and a renewed no long for stakeholders now to I pay with believe is firmly work that greatly and I into we

Operator

Hamblin question from our Craig-Hallum. And today from comes Instructions] Jeremy [Operator first

Jeremy Hamblin

here of improve front, progress QX initiatives. understanding around expect you merch There of particularly, you expecting strategic the better getting potential And on noted seeing wanted what margin your I the a lot start improved was what to just a results to on a or and against were you're the get to markdowns. in margin QX. I that continue to Congratulations of with year, pretty wanted sense that.Last magnitude tough. you're

You in And we made to as peak up like of QX a I'm XXXX, year just to to that's this look could gross here back in gross really XX.X%. if a it go whatnot? QX wondering look at bps. if QX margin you have XX%. a in we nice little see see progress for QX, context we whether just I could of margin saw XXX context think like, if you what of like was And range or wanted over

W. Madden

Thanks, want I'll may Jeremy, and it's chime start Mike. others to in.

rates came I higher with one the much some if year the would that's a base, this efforts IMUs coming better. also to you the year, our point And make where going quarter, margin big going of with it's freight I is to way to last due into lower. this is, part but compare our in into in due think being this in we vendor we're

in, through And So the a been stronger was we we're started in had nice third actually increase November in had where significant. to build quarter. that coming It we from was running. saw improvement a position.The

in the through assortment. lot into we're still with in some pretty fully some early in the of that other -- moving QX. the some on And front better fourth started changes really that position third categories, we a So heavy in we've in going quarter with made equipped these the not of a markdowns

a clearing to factors, of just we our do chain year.On we those components, a that us improve the last move have don't that on year we into supply that lot think, And have yes, to QX. we efficiency. December to So were improve chance other better we I through continue that as inventory feeling give this still

that depend the leverage and sales year rest this do, if profit, the continue just we you fourth to as going quarter. think into overall historical quarter to the that's will that to we or I I quarter, certainly the get how minus. plus levels, can on would into at think is I momentum line to the the fourth well get of those top in better last our And in it back look through be think not to the XX% gross but we favor as range some and positioning on But year. coming results in

Jeremy Hamblin

noted your That's then also your may some items that did inventory that in larger looking still to And great. you remarks and have you in you have ticket move on from.

Although it they're get 'XX. during what holiday still not our do how like maybe here inventory some you to of add could be on And maybe there as that? key long items think through the items might just expectations if that period, some And to linger? little were does a aged into context wanted sound around should move see we you I

Amy A. Sullivan

with as the areas, year ticket inventory we it's as at move Mike of in total, in have and Jeremy, has of ticket a really we of residual category, bit all those furniture of particular, well been know, just right continued else. we we that through XXXX Kirkland's anything but higher and where of back that wall significant were macro have can the to sort about art. our get having I terribly I'll things be carrying wall as year, Kirkland's in next from part The that business the as higher furniture earlier into comfortable if items AUR the the are to I'm take of a an we'll always areas, balance. and year this And earlier the There's where of in year.I'm from Amy. of enough into be bit the that dwindle as little X you the a layer they and he year, and to of in business. always in decor a that's impact. will be think worried the wall, categories part earlier part part and and the significant add it penetration a and overall decline But in the the particularly on sort wants year end not would

have sort will we post-holiday products bring that help to As not IMU, post-Christmas use of as our also only period, clearance get out some going period move that spring in year be focused up strategically new clean the that earlier clearance get but we into we'll to into coming time on this and in XXXX. of of the and to from really hangover try

Jeremy Hamblin

great. then to Got to on it. That's wanted marketing. move your And I

in of your you've is year-over-year So nice made meaningfully wanted you I and should we your look that of down expecting to how get I in pretty pivots planning that messaging some XXXX, customer delivered marketing to ahead being reduce in here an be think for what base. as guys really understanding budget to wanted in a marketing for 'XX versus might terms on 'XX? I was strategy understand terms basis your cost. budget XXXX, of what that as we budget looks how like compare here QX. that into then And on

Amy A. Sullivan

we for to more in intend The now, And difference deploying is move hold Right as sales flat successful XXXX. it of X% into again. are Amy we we marketing X.X% it's that Jeremy, to places. running our budget. we're So around

And so lot marketing of program we've SMS things. recalibrated we the mentioned that funding and a had success during way budget how new and additional we're spending learning the our doing. we're script, my that there. have We've I into testing

as things budget to and trying funding an opportunity open a really learn of that working, So to it slightly and sure additional capitalize marketing have play merchant stay put and grow budget to are now, similarly really year to might the so ever a we'll little seeing month to we're that but our by would there think month. close more.It's traffic love that that we on funding next where -- to that's positive that we're some it we really I'd test make to continuing buy right sales for and it grow as

W. Madden

in more much you in the and in a of $X to the more And flat. be fourth not the year-over-year, are we this going that, half, bit as 'XX. or but pretty we imagine, down back than 'XX little would the And about quarter give to bit side I mean, little fourth a year. support it's spend Jeremy, take, different mean sales, numbers I it's seen you've each quarter million, to the quarter, on what

Jeremy Hamblin

Great. just also to And understand. then I wanted

in it the as progress like we looks you've of seen confirm, into to a wanted overall. changes comp trends just here make stability So and back that fleet. I positive store some some made this you've the

not if like, whether felt understand we one?And just of head there as acceleration kind had some of store we kind typical to 'XX closures any was into of the or like closures, you terms have do you of then or wanted of through I First, to part just balance to flow balance to would expect your sheet in line year. utilize of be and 'XX. you related credit the would There's here and a ebb the progress kind inventory sheet as X needs how in we natural and additional,

and maxes line just QX. credit for then you made I presumably wanted you've nice of So kind of but understand need into line to that use debt thought 'XX really QX, you your in timing out on already in where paydowns that that what some here similar might peak

W. Madden

start with I'll Jeremy, store question. the Yes.

consider we think January. a January, that store lease rent and X be X with I expirations or now I renewals. There would expect housekeeping I are to closings or to see think in about is to typical fleet dealing in would but right way closings the and maintaining. are going few

those but let's let's see a can e-commerce we also drives those business our well. as are that you'll showplace location But this omnichannel us important for consider in each as of to position really the largely, looking way.So really that. as are location as So well in stores an and stores business for improve we each the at side

that we So position works the We and credit are the our into peak.But everything. maintaining. us, taking in to for And than We of little that want we remarks. that look why our anything what have to mean, with get do playing second the we might but why in we're will considering that and your of about more invest bolster such really kind would certainly And balance talk we how we're to be now. up to trying liquidity more we and to can flexibility. a that's and at comfortable speed build a with a terms point, know wisely our yet, kind turnaround to like order of just for play we in need cited sheet. I the throughout flexes in way that's question about that line that's we're offense we're XXXX. the position work build us leads feel don't We things to prepared right liquidity that offensive and to I

Ann Joyce

Ann. is this And

action as a In visiting on way, the includes around but positive points and store product, and the conversation, the estate earlier just And we're performance et location to performance, taking I real Amy are can that, their to in of localization about that in made. strategy say, single Mike the mentioned parallel every physically demographic would addition understanding allocation not what just strategy I cetera. to mean, triggers the affect it that anything field, igniting and which the is

Jeremy Hamblin

you Got great it. wishing holiday season. on Congratulations a and the best

Operator

from from next Benchmark. our comes question Lawrence John And

John Lawrence

numbers. the that have and Congratulations change mean we tremendous board. and stores the resonate the that on across visited we've in seen I certainly, traffic seen certainly --

talked in of -- but you the it Amy bit that when or sort So one what of sort into just little little congratulations disappointed maybe quarter, balance in surprised be obviously, couple bit Ann the mentioned what that a from you describe third the look very you quarter, a improvement. second if you Harvest about laid it moved as you maybe prepared or a positive. you you that and that remarks, with either a of of out And about assortment, look, looks -- either at standpoint.Can categories If bit would of little the you all just you?

than worse to trying categories may better that have Just expected. of either you dial into those or some worked

Amy A. Sullivan

Sure.

historically QX, is as high category. really too been think of for So throughout customers. I of best furniture, specific value furniture, we sort vases, I accessories is And kind mean, of with us, all decor the to customer's categories pricing, home. And of decorative got over is the a the that accent a for that of mentioned, growing basket the the standout. pieces years And our had one our along that category

business sort high-unit X And saw kind times say here. that items importance completely of the into back turned I there.You've of the that high-value, and and really we down, would So of and velocity tale of a got heard is us impact of success one a for upside stories. of the basics one a ton couple seasonal me mention

the earliest think and you success, we that for had I seen about little in say, time have business would here. fastest that Harvest, probably disappointing. a And a If then Halloween just my demand was season runaway bit QX,

of we Some pulled. that,

sales those into forward QX. of Some

So dialing little bit mix strategy a in in, drive the because still bit new there of demand. product little sort in, to of that a pull our a strategy of being states had as marketing in are we leverage is to was of and still forward a traffic loss of were and the leader old there.But product we Harvest QX, strategy,

feel on And so bit back getting we're of the dip, liked seeing well. are think areas in a I like a pricing is as more then than I say and year last industry-wide, I Jeremy's that right furniture to about that more go into those Furniture, AUR mentioned 'XX. there. on good ticket ones heading get we can that question But we we've wall I that, again for got the balance higher work categories, direction just to.And still the get I have do track we really would value true The little still eroded as customer. I into this to our as the that's thing on feel but the back would

John Lawrence

Great. from we what me, half think are where first changes, last through move we as and look for do of as see the look 'XX at that thing you you the assortment, assortment, will And deletions you into you as 'XX?

Amy A. Sullivan

You'll seasonally categories. relevant see a continuation of more importance the on

of So the sort holidays spring alluded of calls, the Valentine's I've and past always say in as And that this and biggest this sure to about couple we're florals, on notion shift I of then you is well in like smaller year-over-year, think Easter. the something would making new. stock

trend quarter. that have that ensuring ticket, moments we come turning, little faster in And the throughout some so lower just

Mother's really holidays gifts that to different enough So you've and say we part would doing be I used been thing the to amazing. the of category, is with I that know our business, long and Day, resonate of sort with then that our important a and QX customer.And and us impulse this reintroduced mentioned other it's

well, So for next some year, upside in having conversion that top and certainly to sales year-round us I it's stores. line both be as in going think in

Operator

this this your concludes question-and-answer completes thank teleconference. at gentlemen, for our and ladies We you and today's And time, session participation.

lines. may You now disconnect your

Kirkland's (KIRK) 30 Nov 232024 Q3 Earnings call transcript