KIRK - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

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 2023 ended February 3, 2024.

Joining us today are Kirkland Home CEO; 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 this call is being recorded.

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

Cody Cree

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

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

I'd CEO, over Amy over to you. to Sullivan. to Kirkland's turn Now Amy, the call like

Amy A. Sullivan

that we heritage. we healthy everyone. our Cody, the achieve what year These to levels value operating Home. delivered great modernized the that career had in Having heights. you, performance see and a of opportunity this excited various than what again. ultimately I'm decade returning during opportunity morning, to I've of can call repositioning results, It's new believe previous my historical of at and a good a and around today's incredibly are to to be company those Kirkland hand are The at reach new the business as the past to Thank leadership restore initiatives joining results CEO playbook version and in doesn't roles, of works spent consistently more we've great initiatives implemented centered our work. strategic

from both years. X that Facebook, brand in the wanted following than that in over time, we into X place, financial the significant into a program. of let's of we X jump in repositioning holiday was remind hold the of the change original to Kirkland's proud Kirkland customer we're strategic optimistic report remain With saw This our a as culminated right Although towards we XX million with to out per are organization, priorities.Fiscal for can year followers on we our significant progress framework everyone power lagged performance over and some over we some strategy is closed unlock transactions Instagram has strong that XX and during more I We powerful value have broader brand. our XXXX million with our customers our initial season. our and year and how the across loyalty the entire making take million year mind, built strategies

period this promotion appropriate effective we into period compared marketing, of to more levels last strategy. Going inventory a pricing the merchandising, more had year, and and relevant improved same

profit gross would X.X% closer impacted that As comp in our operating of of million healthy a comparable weather adjusted to $XX.X a retail the much it increase for If footprint, our and generated likely sales January X%. strong flow. a of margin result, in a weren't we XX%, positive seen we significant sales, EBITDA cash have

in what strategic this how played in implementing learnings track.Let's priorities year. the we out We our that close the we believe generated these of and take Although we momentum now we out on pleased and QX in store XXXX business into our to the we us are path. in strategic the beyond with are and them right to continue year, can back confidence which our gives we get repositioning, on are X early dive have stages

it and our keep at strategy. imperative voice the brand our First we and the the center of foremost, of customer is

we know, and deal remain macro with to price-sensitive. the environment uncertainties broader in consumers continue all As

While into our resonating brand We We holiday marketing heritage, environment customers. is us, with took year. of this merchandising does repositioning lapsed revitalized XX% value-focused create keep her lean during opportunity a driving to challenges saw this which will presents the our it throughout reactivation a as strategies for also our believe hold, customers. great and engaged

within beginning our With see the our we of the decision-making, center many of the in to marketing are customer at strategy. success pivots

shared our brick-and-mortar specifically, declining and marketing recalibrated more traffic. core previously, customer tactics we to reengage efforts focus As previously we to on our our

our the year in the driven the down and in first our improvements up QX, X% from XX% shifting We in by in reintroduction pleased targeting the are strategy geo mail. to direct store traffic of paid trends of with media half largely

increase traditional customer excited our product this marketing an in to in program. launches I'm share increased To new we have partner. digital around worked and partnership with drive plan partner this Additionally, exclusive in compared to new rate a click-through text XX% We to to that engagement formalized technology utilize to test video resulting with events. a FMS SMS, technology QX promotional

expect we from strategies. our we to ahead continued look reactivation benefits As XXXX,

obsessed to will at a a are and to our seasonally product commitment our second We strategy.Our on tactics by strategic nimble home remain we to acquisition is in delivering trend marketing efficiently balanced managing conversion our tools brand traffic, solidify curated being great price. relevant and to ensure priority approach decor

our is always We responding and mindset well. new back our something customer brought have

our a Decorative and value season holiday perfect decor category much providing larger categories, example of turning drive accessories such and XX% continue year a as to business furniture can exceeded are lower Although that decorative a sales we comp, the with like struggle, during ticket gifting categories ticket holiday expectations round. Waldecore faster. accessories,

we all and QX, delivered now Additionally, we quarters. our capitalize on that gift reintroduced in can impulse in which incremental X sales category

floral, decor very customers' decorating. and and in year, demand a XX% textiles, delivering our this for assortment margin sales further by holiday was driven solidifying Our largely well strong X% comp, received passion comp

wherever throughout from all categories an to delivering whenever she that wants want these growth the third turn priority, We to year.Now meets I of shop. and X our strategy to strategic her omnichannel expect

we earlier, are shared trend and positive merchandising from traffic in store our marketing I a repositioning. As seeing

have a channel we e-commerce within structural to brick-and-mortar more through work sales experience. e-commerce of While long has order has to potential. shift to be the our in-store, be brand among consumers plenty execution, but much strong certainly e-commerce of overall a been in over the to its within in done Traffic continued we strategic back necessity our There continued to challenging. believe business and has maximize opportunity capture channel term, full

certainly but marketing our it support to we is brick-and-mortar due to realigned of channel. shift, self-inflicted Some as some this of is macro dollars better larger that the

larger a to price as our have sales. higher the resistance business generally furniture our a greater been e-commerce to Additionally, those categories, and Walter such categories as online percentage ticket impact has of

largely the our of brick-and-mortar subset years, the the promotional our has the center uniquely to e-commerce assortment, brand, the experience customers strategy. in need we technology marketing been our Kirkland's commitment a Over journey. online to her keeping recognize of refine the strategy And at for and

goal in sites. maximizing we process experience online for to we a with of XXXX and Given on meantime, the with profitability a currently are the are our technology, improve In formal selection fiscal relaunch. a our focused modern existing conversion customer vendor our replatform need on

e-commerce marketing Throughout of in-store shipping business and tactics replatform of the were sales we and locations year.Turning ultimate goal an how component created not team we promotional XXXX, unprofitable with pleased force in are internal the have several reignite were next to drive a a performed. stores inventory, our on we refining on returns our process. stores to are felt closed salvaging. focused strategy, we optimizing have conversion with omnichannel existing worth to Overall, that task working and our strategies We profitability our ways e-commerce

a brick-and-mortar to As within mix, look are we revenue at our footprint. our conversion per opportunity an foot we positive consistent increase in-store and our could our believe be current accelerant. faster-turning With in XXXX working to traffic, product priorities, return we improvement square

testing trends. stores earlier that and We operating across strategies and current midst are our traffic data opening on include staying later the evaluating in customer all now, we of based right are and hours open

are it aren't any that within on our period key leaving testing expansion changes, omnichannel early finally, exploring. While And specific a strategy, there this initiatives table. too we on we sales the is ensure we to that hour profitable few additional to comment are using are

For our example, be we at are might exited a looking we few we that markets as beneficial us customer. core previously to reengage

that to narrowed real results discuss partners, historic we as let's With estate early repositioning.Now are have incremental we are have and on current the indicator new but operational based we is in a introduced, we every our are it engaged strategy, and on to initiative strategic growth We profitability. pleased ensure see our with markets maintaining benefit leading that fourth Overall, a maintaining in customer with expense demographic. opportunities disciplined strict sales measurable that with and our discipline overall stages effectiveness. a brick-and-mortar see customer our the we can the

merchants in to optimal a the inventory analysis we've also with implementation in For better The right implementing recently, this key management we an have there versus to promotional and profitable now, turn term. of return pricing markdown This location evaluating this margin we remain will are effectively, table. the on is will This to is our traffic promotion and we driving best this inventory and planning, brand into maximize the what as sales inventory believe the effectiveness of an with our impact profitability. sales year. low We're current responsibility the in strategy tool better promotional overall believe More must-haves coupled control strategies including approach process, of should deep short margins, of effectiveness and provide and marketers and invested we clusters, the fiscal latest sales. the improving to this nice highly overall our this in in not a time to on we focused the Through have more future have and allocation drives in-season improve to us allocation of an meaningful product the forecast our strategy, well By drive our left the buying disciplined cycle leave resulting profitability. and risk a store overall advance ensure potential health is aid opportunity check, life and margin. upside and a at to calendar that doing tool, year. long-term investment clearance

through deliver driver impact better initial be but results inventory for long-term margin the flow this half going So could The forward. significant this to work XXXX, our in our will of starting of a begin will business back optimization success the for product voice and continuity through certainly priority on least, cycle.Last full forefront life a our the with organization process the focused but fifth at not is associates the of built the driving our with culture. buying of high-performance impact our

efficiencies want their a we XXXX energy our I'm of place frame like outlook. of the and exceeding office difference financial the a on will to to may have in all for We committed with commitment thank as customers forward proud to and our back we just the every has I'll to positive close now and to driving associates center such amount a they team limited I'd and and With long-term With made true navigate you. and your are Mike, results. stakeholders. we provide to believe answer questions started. to We Home appreciate time detailed passion your at dedication we that, of progress our be condensed made out look any and potential call generating remain beyond. have. the over end As we to commentary distribution unwavering Kirkland merchandise our we value the our believe home year, operations of with embark turnaround, continue to and so support store, expectations. strategy that getting to continued and on nimble a who delivering and in our you turn marketing is year to unlocking and we positioned profitability, new resources, call I the a bring our well over repositioning, recognize this are and and we in momentum performance Mike, of for a tangible

W. Madden

morning, Amy, and everyone. good you, Thank

to merchandise in store traffic the Comparable the XX drove our count conversion, $XXX.X versus The an point in the performance the faster-turning this XX% The partially housewares were X%. down regions, Declines and compared to as wall of our driven prior profit improved quarter, margin decorative rates XX% in gains. Breaking down decline in weeks increase this all with November, in both quarter. a clearance was year up net XX versus comparison sales had increase results $X.X a emphasize to year options. to $XXX.X posting December XX.X% X% combined winter within E-commerce for to e-commerce was increased we sales our XX% seasonal margin. price of to weather, prior down in points strong average in lamps From million accessories, overall change First, quarter accounted For Sales consistent a business week to offset increases of year. lower inventory and the sell-through gift to quarter, drove were X% last and XX.X% merchandise the XXX a fiscal in of million in Store the freight increase an extra sales footprint. store compared X% comparable year the assortment, prior relatively in prior of basis while category, year year reduction sales the as included XX% fourth in from components the prior by channels. amounted particularly were strong partially was quarter, repurposed store quarter. approximately Gross fourth sales ticket increased XXX points and sales hampered which sales by activity comps million. of compared X%, across of the The and in perspective, using increase X% the follows: quarter. the increase of assortment merchandise XXXX total weeks geographic The in margin quarter.The increased quarter in January. disproportionately the in year-over-year quarter. X.X% with year furniture sales compared XX-week X basis lower in by down for fourth January seasonal quarter, the Florida. sales was average the for the year up affected in omnichannel prior was as down quarter. offset comparable

centers. XXX the costs and to to in prior operational labor sales efficiency smoother and costs distribution central X.X% decreased inventory quarter. of of flow points our X.X% basis compared lower a Second, by year led sales to Increased distribution within

income sales expenses, costs rates million X.X%. EBITDA, result $XX.X increase. to of more million the margin lower in points a the e-commerce the e-commerce current an positive along parcel year, comparison as sales decreased store improvement costs, average These calendar, resulting shipping year.Adjusted the increases year the from lower stock extra was result quarter accounted The declines offset to inventory slightly XXX than XX quarter prior or of $XX.X percentage quarter higher in by points was in the borrowing largely Third, in the to expenses is these expense the levels and due $X.X points and in lastly, due is deliveries. shipments was decrease reduction in compared $XXX,XXX prior and increase of And expenses outbound of an the a prior reduction occupancy compared year XX.X% expense with store interest dollars loss tight including the the approximately rent offset decreased interest Included extra impairment, primarily sales to and both and operating included interest and rates. million on for the million $XXX,XXX quarter. reflects in $X.X The for charges the sales were which $XXX,XXX compared sales was prior The other to in compared the by a compensation was quarter. X.X% income to This to was excluding $X.X corporate in of depreciation Net comparable year control. as expense, basis quarter. sales. basis higher of comparable of of store of a salaries. Operating freight in X% in compared cost X% in of amounts, XX.X% million gross effect XX in million by expense $XX.X sales week net stores largely store expenses current versus $XX.X year minor Total other reductions to of in significant advertising, increased being basis continued of decreased to X.X%. year-over-year prior million and by operating to the to year primarily percentage million of Fourth, or to or primarily million in levels $XXX,XXX impairment for $X.X or sales as quarter. comprised other sales $X.X which the operating

prior $XX year. end $XX million the borrowings compared capital had our expenditures January be rate year an of the tax quarter a balance in million in levels credit fiscal amendment a income pretax We million the of quarter line from reflects the million March credit of 'XX, income for $X.X million outstanding under at inventory negative at compared at control continue facility with for period. $X.X of the of operating to decrease our year. in sheet inventory closing was 'XX planned 'XX. facility a in and The additional benefit pretax expense the of the inventory, costs the $XX.X our of XX% of loss X% increase and X.X% our ended with borrowings perspective, Our to prior We of performance with the end $XX.X in From prior million year-end refinancing associated and in of of in to flow.

its our not visibility guidance conversion. in the enter given difficulty forecasting around and and new are fiscal on of our policy providing continuing specific macroeconomic the traffic environment the impact we As we year,

from February to average softer Easter want is comp we our some control. to and profit quarter, improved do year. in value. we to from the to color an areas.Early perspective, close conversion conversion brick-and-mortar expense with strength an through in foot stores but order some positive gross sales key the continued trends, seen a lower and expect traffic by sales offset slightly were results a recovery have March start as improvement weaker off a and occur early first provide owing in continued positive traffic However, own a we expectations strong with with this month a decline Partially we along around our rate.

For backdrop, the are and the we 'XX combinations With we to path as EBITDA focus positive on losses. build a toward categories and of expenses effectiveness promotional the macro favorable after ensure of throughout adjusted sales operating inventory margin by declining driven with the tightly clearance and improve aggressive improvement years the are with our these us provide expect across balance to chain X efficiency, factors merchandise continued year. transportation year, we costs labor the of assortment as Supply economic and in to season, and we faster-turning holiday very shift business. improvement managing coupled reducing costs our in freshness a

beyond mid- get Looking margin. high goal to a single-digit to adjusted our to this is year, back EBITDA

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

the e-commerce to from channel.On improve taken potential productivity Our remove enhance long-term steps of profitability technology sales facilities. chain or to have supply cost to $X.X of million store already that through historical our initiatives full costs efficiencies our the we merchandising unlock levels and marketing and distribution goals fixed and side, to are return

reductions these updates areas been the in additional years, cost capital last ways believe we on In provide I'd address And our to addressing like the are redeploy. reiterate for have each priorities we are and We of to over several operating progress one lastly, achieved areas. but coming our to allocation. additional our quarters, will Significant structure. streamline there

returning Our flow. #X priority for to now business cash the is right positive

execute crucial reducing we with more closed that liquidity January providing in level and our make business expanded that was of credit on As we as continue operate to the we in reestablishing strategy. capacity facility additional flexibility. borrowings toward a progress allows to end, us The focus we

prepared As technology openings to And ready focused on and we our term and we also reinvesting the that so, repositioning. are e-commerce near do the we as for concludes priorities business, targeted now continue store remarks. Danielle, the our enhancements relocations in for we're some are execute Q&A.

Operator

Group. [Operator go Capital ahead. First comes sir. Instructions] question Craig-Hallum Jeremy Thank of from Hamblin you, Please

Jeremy Hamblin

strong business. wanted the on the I near-term the results and in back to Congrats to around commentary momentum come results.

comps positive in So it sounds like slightly February.

You us look which bit a slightly shapes March assuming or when us you be QX. sense that some follow-on, just down noted a you at if be I'm April margin a the have you in was remind comparisons flat year-over-year. wanted year-over-year, gross improvement nice as of expect means could on you to might Can that there? may And we I that you then see expecting noted that And softer, you the up? magnitude how give

Amy A. Sullivan

Jeremy, then context let Mike little of April on you me give can March, and a give some sort specifics.

pretty high had Just all a we're right this really year we XXXX. lapping events as robust now, we're period specifically in And March, last that sales. for a furniture in in furniture reminder,

go-forward sort really, of We're I higher and we're think Mike Easter, let us. really that said, softness in is last of we in I'll for pressure momentum decline So us. big well get come the Mike on then is as that year. positive a a back period I as still But furniture March we that. consistent think, lapping to seeing as this category, really And comment for year-over-year which to category. expect as AUR around key in part we're against calendar that shift the still closer the that of that year, up pressure in that growth of our the some to is some

W. Madden

and retail we just to asking, too comps, you've different. like Jeremy, been you think the our a if that, shift much quite into a you're with wouldn't I calendar to shift weigh progress paper, calendar only calendar not about. add And is promotional in got talking the dealing evaluating at we what we're that I with Yes. look Easter, calendar that we're On of and terms planned, as not have have actually that

So that is Amy the question of We're encouraging. the point. through I'll to went about continue And a on work your lot we just doing margin. side. of there them the really of and trends in each labor cutting efficiency reduce the on margin, back our a job see stores then on which make positive merchandise margin, component in is of if e-commerce we key levels. year, a X kind year. remarks. last merchandise to doing driving to of to merchandise side, that's dig continue us That's margin. to the supply the that the and along that, of on our her improvement lot where is our good component to that parcel gross a lot for We're but continued routes costs, margin getting you kind with But also fixed chain eliminated improvement, expect margin in of rest our We've which We've our year, included of lot so profit managing contract, hubs and that's cost inventory a in helping of the offsite. lower closing needed revised a this better closing

of We really the play that for be expect all to year. in

through expect to of it don't but I time during frame, for we'll the improve of QX see a on gross or that that improvement had think flow level just ample improvement. significant to QX. be that will profit we got XX.X%, we've of the I do last because amount of I So ability year, margin the sales think that

Jeremy Hamblin

struggling which little transition on XXXX. just to e-commerce get the into great the here a me And relaunch more let bit like around I detail is improvement And it great. for sounds to -- a wanted about E-commerce plan That's bit store traffic. platform, comments your more.

just you secondly, support e-com, a that that stores? to needed the that relaunch platform, as of need in And fitting would of that might going the So of to do that And you investment think different about channel e-commerce be needs what to it you are for assortment is? you what better about you assortment be to talk customers about a then see around Can is portion the forward? is the anything like might help the as relaunch -- when meet have relaunch. opposed talk -- move more from your to what shopper you online technology do is

Amy A. Sullivan

Sure.

So e-commerce. and behavior my comment that been at shopping I predates extension shared, highest of through historically little really of the always define Kirkland's And strategy. strategy. those the heavier a is wall that significant has I historically different more the an a been remarks and more level channel at for furniture much in of go e-commerce and need we And that recognize made just categories to brick-and-mortar strategy the in our part online. been ticket like those a customer have decor as higher that even business, prior categories. It's we

that needs and online we're and going is now to forecasting at check to ensuring adequately doing supporting visibility our differs right mix And planning this allocation better some that give the so I demand better of that think we've team got merchant store. a assortment job how in we're to help do health and

that we're needs. giving adjustments that she certainly with it to to strategy having ensure what customer online assortment So the starts some

into of experience, a brand aesthetic compare some terms want to it design to very obviously, test assortment, businesses white brick-and-mortar how In some would the opportunities, online, to but we much overall still future. in there's definitely space we new opportunity one the believe be have brand,

a business is place to drop Our do ship that. good

XX old. the side, really assortment is that's platform it. current sort years of mix technology part on And then our of So the

technology folks most and every upgrade X so X go years. or And

really my And expectations so we customer point online. that at game really baseline of should experience opinion be the are what the in our on where we're behind current

significant more little a conversion. have We dips in

hinder on We our have cart some abandonment us. continue to issues that

and future good specifics, maintaining XX-year-old time it's past more the get is modernized wants color The in business. on investment some for many so cost a news make add very I And time a won't of that, probably too it, to to expensive. technology our is on Mike platform us support an into and due unless to

identified the year, because fully a flat which one partner how So would together. of as beyond with, see getting our it's slight actually to we're near platform Band-Aid sort we forward, but requiring we're new will much decision. It of us be we go haven't savings on implementation existing we move that going to to

probably will obviously, only several improve of that we on expenses and capital just manage make people capital from in dated year. give whether are of conversion it's early or these a year being some whenever not website. years sure away that helping of an that I the of that bit based for So and something off, expense next savings ultimately, for these budget would contracts be that us But to think end also older a our to and definitely it's implementation, sales, really outlay have us will come protecting this kicks we able but a walk little

Jeremy Hamblin

credit color. hop kind for Helpful facility? you the the it. of and down me, would for of might I'll your And just expectation terms Got on think then do peak of outlook? queue. XXXX? out Mike, be And on draw what, your in need then your CapEx you the What based X is last sheet side, on current balance what

W. Madden

Yes.

X.X% I looking we the last think at X.X%. So at CapEx were or year, so

that be little it year. much projects a a I some budget very but doing, year. we that less We've this bit CapEx got than are will think maintenance it's

I million a platform. mean to be mentioned So we talked expect I trying offense. that range. about little million, $X e-commerce could the we're be $X play I

true fill that at or be real won't we We trying tried for we're where about program, big least to talked -- really a some able really I going and be estate. some mean, it work to target evaluation through an might know out areas will some markets us. enter we but we're also

some So that. we're to capability back hold to trying do

obviously, sheet we how side, and balance the dictates occur our inventory. On in our in inventory seasonality buildup a borrowings flow normal expect

this season. get I we think that the We have will going on last and much because we than borrowing it's more but to capacity higher. into to as last capacity be a have do that starting out but timing we do expands year. than that, lot deeper simply how and capacity cover have do year the additional to really peak But with higher the year, more we're will

Jeremy Hamblin

year. this Got luck it. Good

Operator

The the John next from from question comes Benchmark Company. Lawrence

John Lawrence

Congrats from holiday you categories, you what assortment. little surprised a to the about looking or really and just to grades across you when you white out in maybe and the at a give turned can expected Amy, quarter. guys great and be that the went would disappointed you what into planning board how you talk good what allocation fourth standpoint presentation say, and on the sort and you what of the

Amy A. Sullivan

and say, be another Sure. is obviously, holiday I we as from know, for this this perspective a a to win all that brand. volume category category really continues, would just for hero

And really have so strong we results.

job value really merchants did think handful a key of the really in reaction consumer depth a category great the rightsizing had We out items. buying of of of viral items that marketplace. I floral the in that team and into had our a

long weeks us think were I the there it gift historically we which did we part item because to So enough category, in all strong the been were had the that really the shocked very where peak of you've us. know in item holiday we business, and one season high Not high of turning, the really company. been to the a really was expectations gift category, point pleased. has huge was individual for top exceptionally well. with of the but faster a win margins, that re-implemented Strategically,

largely us that the going X over that give a surprise year, the the half if And think so assortment. the of year. we're the that to we quarters we back have of first the half and we real upside maximize into first really turnaround by is I period Even accessories category. then that the all my we gotten could Day from about fact about recent away gift walked feel some in ongoing decorative that years, think have year, Mother's biggest really driven and that business, good say just we you would And probably of that of

us. furniture It's like driver Obviously, I slower immense would guess really turn to for been If little growth my down to the of back in sort of a years continue wall a historical that's than in in off and Kirkland, it as little categories to you holiday really bit I had of look strong them be that of front to. are And a shared category and terms half year a the sort holiday disappointments. driver continues has just the we I and commentary, decorating. then But say would we that in at a categories fall at of as been trending because tends well.

overcome drove deficits we the very in-store the that with we that between think traffic, sales. we don't I through. in were But the QX were really that manage can't to able nothing those conversion in categories that pleased improvements fast-turning So

John Lawrence

you any in but get need go here X.X And January it to several little put the customers real that I Obviously, not to days, employees, correct? couldn't a impact, only points. just South I the to close I to cost Med stores where X bit. assume store, through we point, assume assume

W. Madden

took mean the that think John, is I Yes. laid out, our I of was store we that. I way mean, -- true. the we brunt footprint just

this So it mentioned next Hopefully, year, I normal We of about a been gives remarks kind would be the had been to up weather in year. bit we'll that comp Amy's January a know will X end little fiscal it mean closer million. the in help month. and but of at takes, this have $X that was we on yes. -- against about

John Lawrence

and you the and at during when as stores took the the top you closed look for -- quarter, look XX as is fleet, at So spot me that last you the you X when Are that that or question those, of you changes are store Amy, the Is fair? assume, that improvement would an there with closed. of been the months those I some you last look over of across fleet staying have some X stores that open stores. these

Amy A. Sullivan

definitely that's we're this kind Certainly. of stores our I have too. top wish openings volume behind driving of new slot. some former force seen that top returned in to list stores of really also of mean And sort we've their improvement targeting for potential

of able our on we into overlay to new could of or use to our you obvious really and perhaps map real over made dense old current stores in. those But map back market some X those of they customer were some at it customer our real strategy, store closures of at time to we very opportunities and past because on estate were estate stimulate Kirkland's to the and reposition close back and we years population the as look old core the an go sort sales. some data sense where a If the go at there's X

in on So both really some resonating ends, seeing historic that real with changes sort positivity of made. our the estate strategy we've

John Lawrence

numbers gaining those that of give just a sense And of to approaching of how and Great. a X.X you stores there, can those that we done work know there's numbers. speak. I but And $X.X be are close us idea to many on got the of billion those to sense have some as be

W. Madden

Yes. I mean an that's average.

other e-comm BOPIS. it's at between to that stores. we're necessarily talking currently say, about really allocating I'm $X.X -- one any $X So than We're like and a million million, not

is maybe the our the Amy's and what to point, we're X we've we some of areas on into think say, last I strong or than market I up years did for some the but -- picking strategy been of in, that are feeding the the So takeaway now stores, faster merchandise so. in recent historical ones that that more what how is seeing seen, think we've what

a is stores that and us that So part customer implemented over the we're think the we've think I these traffic I that with the speaks that And right knows in. in the and seeing show XX us of years base up, last months has seeing over starting that's changes drawing to been that's increase to a now.

why built list, I -- how if we opportunities on and that's a come but know look to So we have will like wish don't at think think we we more that, many really so to if because but strongly ready into present some areas, we be quickly, be successful. feel there themselves that we'll these to go want and back of we we fill

John Lawrence

luck. again good and Congrats Great.

Operator

session At today's this you time, for completes this teleconference. your our Thank and participation. concludes question-and-answer

You disconnect may lines. now your

Kirkland's (KIRK) 21 Mar 242024 Q4 Earnings call transcript