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08/30/2022

Kirkland's Home Q2 Sales Down as Store Traffic Softens

Officials with the home specialty retailer said steps are being taken to re-engage with shoppers in-store and online.
Greg Sleter
Associate Publisher/Executive Editor
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Kirkland's Home

Second quarter sales at home goods retailer Kirkland’s Home were down as the decrease was blamed on a drop in customer traffic. 

Net sales in the quarter ended July 30 were $102.1 million, compared to $114.8 million in the prior year quarter. Comparable same-store sales decreased 8.6%, including a 9.1% decline in e-commerce sales. The decrease was primarily driven by a decline in traffic and conversion, partially offset by an increase in average ticket. 

Net loss in the quarter was $25.7 million, or a loss of $2.02 per diluted share, compared to net income of $0.6 million, or earnings of $0.04 per diluted share, in the prior year quarter. Adjusted net loss in the second quarter was $16.7 million, or a loss of $1.31 per diluted share, compared to an adjusted net loss of $0.1 million, or a loss of $0.01 per diluted share, in the prior year quarter.

"Our second quarter efforts were focused on re-engaging with our customers both in-store and online to drive sales in a challenging consumer spending environment," said Steve "Woody" Woodward, president and CEO of Kirkland's Home. "Throughout the quarter we intentionally elevated promotions to work through inventory levels, resulting in compressed margins but an improved sales trend from the first quarter across our omni-channel platform.”

Woodward said the retailer experienced sales momentum in the furniture category and its home delivery program has been showing steady adoption as Kirkland’s works to streamline processes and improve efficiencies.  

"Looking forward, early indicators are showing demand for our harvest collection, and we are pleased to report that we experienced improvements in sales and gross profit margin in the first few weeks of August,” he said. “With the majority of our harvest inventory already in place and our holiday inventory on schedule, we believe we are in a healthy position to fulfill the expected seasonal demand in the back half of the year.