Kirkland's Home Sees Positive Signs As Quarterly Loss Shrinks
Kirkland’s Home is heading into the fourth quarter hopeful for a strong end to the calendar year as the retailer reduced its net loss while reporting a modest decline in sales.
For the 13-weeks ended August 3, net sales were $86.3 million, down from net sales of $89.5 million in the comparable quarter the previous year. Comparable sales decreased 1.7%, including a 10.6% decline in e-commerce sales and a 1.8% increase in comparable store sales. The home goods retailer said the decrease was primarily driven by a drop in consolidated average ticket and e-commerce traffic, partially offset by an increase in store traffic and conversion.
Operating loss in the second quarter was $13.3 million compared to operating loss of $18.1 million in the prior year quarter. The improvement was primarily a result of lower operating expenses. Adjusted operating loss in the second quarter of 2024 was $12.7 million compared to adjusted operating loss of $16.6 million in the prior year quarter.
"Our second quarter comparable sales results reflect a sequential improvement from the first quarter and continued progress against our strategic initiatives,” said Amy Sullivan, CEO of Kirkland’s Home. “Our merchandising and marketing plans have continued to drive traffic to our stores resulting in positive comparable sales performance in the channel helping to offset the headwinds we are experiencing with our e-commerce business.”
Sullivan said the retailer toward the end of the quarter began introducing its fall and holiday assortment and was encouraged by early reads, giving Kirkland’s officials additional confidence in its plans for the second half of the year and the peak selling season.
“Through our ongoing efforts to re-engage our core customer, refocus our product assortment, and strengthen our omnichannel capabilities, we are positioning Kirkland's for improved financial performance and long-term success,” she said.
